Hi investors! To make investing in stocks on Groww easier, we’ve put together a comprehensive list of frequently asked questions. Check them out!.
When it comes to investing, fees can significantly impact your returns. That’s why many investors are drawn to platforms like Groww, which claims to offer a completely free experience for mutual fund investments. But is Groww truly free?
In this comprehensive guide, we’ll delve into the intricacies of Groww’s fees and charges, providing you with a clear understanding of what’s free and what comes with a cost. We’ll also explore the benefits of using Groww and compare its pricing structure with other popular investment platforms.
Demystifying Groww’s Free Mutual Fund Investment
At its core, Groww offers a truly free experience for mutual fund investments. This means you won’t encounter any transaction charges, redemption charges, or hidden fees when investing in mutual funds through their platform. This is a significant advantage compared to traditional brokers, who often charge hefty fees for these services.
Free Account Opening: Groww eliminates the barrier to entry by offering free account opening. You won’t have to pay any charges to create an account and start investing in mutual funds.
Zero Maintenance Charges: Unlike some platforms that charge annual maintenance fees, Groww keeps your account free of any recurring charges. This allows you to focus on growing your investments without worrying about additional expenses.
No Transaction or Redemption Charges: Groww stands out by not charging any transaction or redemption fees for mutual funds. This means you can buy and sell mutual funds without incurring any additional costs, maximizing your returns.
No Hidden Fees: Groww prides itself on transparency, ensuring that there are no hidden fees associated with mutual fund investments. You can rest assured that the price you see is the price you pay.
Understanding Groww’s Charges for Other Services
While Groww offers a free experience for mutual fund investments, there are charges associated with other services they provide. Let’s break down these charges:
Equity Brokerage: Groww charges a flat brokerage fee of ₹20 or 0.05% per executed order for equity trading, whichever is lower. This is a competitive rate compared to other brokers, who often charge higher percentages or minimum fees.
Futures & Options Brokerage: For futures and options trading, Groww charges a flat fee of ₹20 per executed order This flat fee structure simplifies your trading costs, making it easier to calculate your expenses
Pledge Charges: Groww doesn’t charge any fees for pledge orders, but there’s a ₹20 charge for unpledge orders per ISIN. This charge applies when you release your pledged shares.
Other Charges: Groww charges a few additional fees for specific services such as:
- Demat/Remat: Rs.150 per certification + courier charges
- Failed Demat Transactions: Rs.50 per ISIN
- Pledge Invocation: Rs.20
- Periodic/Adhoc Statement Request: Email: Free, Physical: Rs.10 per page
- KYC Modification Request: Rs.50
- KRA Upload/Download: Rs.50
- Delivery Instruction Slip: First (10 leaves): Free, Additional (10 leaves): Rs.100 + courier charges
- Physical CMR(Client Master Report): Rs.20 + courier charges
- Courier Charges: Max of Rs.100 or actual
- Inter-settlement charges: Rs.13.5 + GST
- Margin Re-pledge: Rs. 5
- Release of Margin Re-pledge: Rs. 5
- Restat-SOA/Redemption: Rs. 20 + GST
Regulatory and Statutory Charges
In addition to Groww’s charges, there are regulatory and statutory charges that apply to all investment transactions. These charges are not specific to Groww and are levied by various government agencies.
STT (Securities Transaction Tax): This tax is levied on the sale of listed equity shares and equity-oriented mutual funds. The rate varies depending on whether you are buying or selling.
Stamp Duty: This tax is levied on the purchase of equity shares and is payable to the state government. The rate varies depending on the state.
Exchange Transaction Charges: These charges are levied by stock exchanges on every buy and sell order. The rates vary depending on the exchange and the type of security.
SEBI Turnover Charges: This charge is levied by the Securities and Exchange Board of India (SEBI) on the total turnover of equity and equity-oriented mutual funds.
DP Charges: These charges are levied by the depository participant (DP) for maintaining your demat account. Groww charges ₹13.5 per company for DP services.
Other Regulatory Charges: There are other minor regulatory charges, such as Investor Protection Fund Trust charges and penalties for late payments or non-compliance.
Benefits of Using Groww
Despite the charges associated with certain services, Groww offers several benefits that make it an attractive platform for investors:
User-Friendly Interface: Groww’s platform is designed to be user-friendly and intuitive, making it easy for both beginners and experienced investors to navigate.
Wide Range of Investment Options: Groww offers a wide range of investment options, including mutual funds, stocks, US stocks, ETFs, IPOs, and F&Os. This allows you to diversify your portfolio and achieve your financial goals.
Research and Analysis Tools: Groww provides investors with access to research reports, analysis tools, and market data to help them make informed investment decisions.
Mobile App: Groww’s mobile app allows you to manage your investments and track your portfolio on the go.
Customer Support: Groww offers excellent customer support through email, chat, and phone, ensuring that you can get help whenever you need it.
Comparing Groww’s Fees with Other Platforms
When comparing Groww’s fees with other popular investment platforms, it’s important to consider the specific services you require. For mutual fund investments, Groww’s free structure is highly competitive. However, for stock trading, Groww’s flat brokerage fee might be less attractive compared to platforms that offer zero brokerage for delivery-based trades.
Here’s a table comparing Groww’s fees with other popular platforms:
| Platform | Mutual Fund Investment Fees | Stock Trading Fees |
|---|---|---|
| Groww | Free | ₹20 or 0.05% per executed order |
| Zerodha | Free | Zero brokerage for delivery-based trades, ₹20 or 0.03% per executed order for intraday trades |
| Upstox | Free | Zero brokerage for delivery-based trades, ₹20 or 0.05% per executed order for intraday trades |
| Angel One | Free | ₹20 or 0.05% per executed order |
Groww offers a compelling proposition for investors seeking a free and user-friendly platform for mutual fund investments. However, it’s essential to understand the charges associated with other services before making an informed decision. By carefully considering your investment needs and comparing Groww’s fees with other platforms, you can choose the option that best suits your financial goals.
What if My Mobile Number is Not Linked to my Aadhaar Number?
In this situation, you can select an Aadhaar number that is connected to any available cell phone number so that you can get the OTP needed to e-sign. If not, you will need to mail us a physically signed form to open a demat and trade account.
See Also: How to Connect Aadhaar to a Phone Number Online
What Are the Types of Orders Available on Groww?
We support the following types of orders:
Market orders are those that are placed to buy or sell stocks instantly, with the execution price being at or close to the current bid for sell orders and the ask price for buy orders.
Limit orders are those that are placed to purchase or sell stocks at a set price, or lower for purchase orders and higher for sale orders.
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FAQ
Is there any monthly charges in Groww?
Is opening a Groww account free?
What happens if Groww shuts down?
Is groww free?
Groww is free to some extent as it does not charges any Account Opening charges or any AMC ( Annual maintenance Charges) like all other Discount &Full Service brokers out there. But it charges brokerage at the rate of Rs20 or 0.05%, whichever is less of the total value of one executed order.
Does groww charge brokerage?
Apart from this Groww charges brokerage for all the intraday and Delivery orders at the rate of Rs20 or 0.05% of the total executed order value whichever is lower. There are no hidden charges apart from the following charges for Stocks as well as there are no Redemption charges or Account opening charges for Mutual Funds on Groww.
Is groww an online broker?
Groww is an online broker with no branches. The company does not provide an account opening form on the website and also does not offer an offline account opening. Groww offers its customers to trade via mobile and web. An investor can transact seamlessly switching between the Groww app and website.
Does groww offer free mutual fund services?
Groww offers Free Mutual Fund services with no charges in investing or redemption of mutual funds. Groww has its own trading platform called Groww (web and mobile trading app) that offers a seamless trading experience to its investors. It is a safe and secure app with 128-bit encryption.