For many years, Indian depositors looking for security and stability turned to fixed deposits (FDs). It was common practice to roll over FDs at maturity because it was thought that these investments yielded consistent returns. However, this strategy is being questioned in the current financial environment.
The yields on top bank FDs as of September 2025 range from 6.25% to 7.1%. Since inflation has been between 5.3% and 6%, the actual returns from foreign direct investments have diminished somewhat. The fact that their money isn’t increasing quickly enough to keep up with escalating living expenses is now an unwelcome reality for savers.
Given this changing situation, it is critical to investigate more sensible short- to medium-term options that offer flexibility, stability, and higher yields. Bonds stand out among these as a strong option, particularly investment-grade corporate bonds.
Fixed Deposits More Preferred Investing Domain for Indians
For the duration of the investment period, FDs give a fixed interest rate, unlike stocks or mutual funds. Because of this predictability, you can budget and manage your finances carefully because you know exactly how much your investment will increase. FDs are regarded as investments with less risk. In India, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides additional protection, up to a certain maximum, which lessens the risk of losing your main amount.
They are therefore a safe haven for your hard-earned money. Many banks now provide flexible options, but classic FDs lock your money in for a predetermined amount of time. While some FDs can be connected to your savings account for convenient access to a portion of the cash, others permit partial withdrawals throughout the duration. You can obtain credit when you need it by using FDs as collateral for loans.
The duration of FDs might range from a few days to several years. Whether you’re saving for a short-term goal like a trip or a long-term purpose like retirement, this allows you to tailor your investment to your specific needs. The method by which you get interest generated on your FD is up to you. You have the option to reinvest the interest for a compounding effect on your returns or to pick monthly distributions to augment your normal income.
Why FDs are Now Consider Old School
The purchasing value of your money may gradually decline because FD interest rates are often lower than inflation. Particularly for long-term investing objectives when you need your money to grow and keep up with inflation, this is an important consideration.
Conventional FDs limit access to your funds for the selected periodebt mud. Partial withdrawals and linked accounts offer some flexibility, but early withdrawals frequently come with penalties that can drastically lower your total earnings.
Not everyone will find this lack of liquidity acceptable. Interest income from FDs is typically taxable, which affects net returns in contrast to other investment options like Equity-Linked Savings Schemes (ELSS). For investors in higher tax levels, this might be a major disadvantage.
Alternatives to FDs
First off, compared to FDs, debt mutual funds offer a balance between moderate risk and the possibility of higher returns by investing in corporate and government debt instruments. They provide some diversity across various debt instruments and are typically less volatile than stocks.
Second, liquid funds invest in highly liquid assets such as certificates of deposit and treasury bills, making them perfect for emergency funds or short-term investment objectives. They may yield marginally higher returns than conventional savings accounts and enable simple access to your money with few restrictions on redemption.
Thirdly, purchase firm stock, which has the potential to see substantial long-term capital growth. But compared to FDs, equity funds are more volatile by nature and demand a higher level of risk tolerance. To withstand future downturns, investors should have a long investment horizon and be at ease with market swings.
Fourth, Recurring Deposits (RDs) help you develop a discipline and saving habit by enabling you to invest a certain amount of money on a regular basis. They can be an excellent choice for gradually increasing a corpus and frequently offer marginally better interest rates than traditional savings accounts.
Quick
Shots
•Fixed interest rates, various
tenures, compounding options, and use as loan collateral make FDs a reliable
investment.
•Real returns are falling as inflation
(5.3%–6%) erodes purchasing power, making FDs less attractive for long-term
growth.
•Premature withdrawals invite
penalties, and interest income is taxable, reducing net returns.
•Debt Mutual Funds offer higher
returns with moderate risk, diversification, and better inflation-beating
potential.
A mutual fund is a kind of investment where you buy securities of a mixed set of companies to lower your risk. Mutual funds investments can be made in different forms such as Government bonds, corporate bonds, or debt funds. Mutual fund advisors mostly recommend having a diversified portfolio of different kinds of mutual funds. This ensures the goal of the investment is achieved and also the risk factor is controlled. Most of us know that mutual funds are good investment options but are not sure about how to invest.
Many people are confused about where can they invest a part of their salary. However, unlike traditional investors, they are comfortable with taking risks and want to build their own portfolios based on what they think of the market. To solve this problem, many startups have come up which makes it easy for users to buy and sell mutual funds easily with minimal risk. These Mutual Fund Startups also provide you with different analytics and help you decide which options will work best. In this article you will know all about mutual funds in India. So here we have compiled a list of all mutual fund startups with their features.
One of India’s fastest-growing asset management platforms was founded in the year 2012. Through Scripbox, one can invest in mutual funds in different categories varying from long-term, short-term, tax-saving, and emergency funds. It is safe and free of charge for investors but charges a certain amount to the mutual fund companies. You can withdraw your money at any point through Scripbox.
Emergency Fund helps you prepare for crisis or any emergency situation. Emergency Fund is at least 6 months of your living expenses.
FundsIndia was launched in the year 2009. It is said to be one of the friendliest platforms to invest money. It is free of cost for a lifetime and one can also consider help from an investment advisor. It is secure and one can manage investments for family too by adding the family members to the login ID. To date, FundsIndia has customers in over 2,000 cities across India and 66+ countries have invested over ₹9,700+ crores on its platform in Mutual Funds and Stocks.
Piggy
Mutual Fund Startup
Piggy
Founders
Ankush Singh, Kunal Sangwan and Nikhil Mantha
Founded
2016
Top Mutual Fund Startups in India – Piggy
Piggy claims to provide commission-free mutual fundsto its users. This startup also acts unbiased toward customers and provides the best investment options in mutual funds. It is transparent, open, and secure. One can make an investment using their app.
Groww believes in making investing accessible to everyone. By building simple products, it promises to provide simple investment options. Creating the right portfolio for individuals and providing assistance to achieve goals helps to invest more easily. Users can also make an investment using their Groww app.
Orowealth provides its customers with smart investing options. It promises to provide a dedicated advisor for deciding investment options at a much cheaper price as compared to others. It also has the feature of ORO assistance that provides intelligent and personal advice. Orowealth has raised around $2 million to date.
Fisdom
Mutual Fund Startup
Fisdom
Founders
Anand Dalmia, Ramganesh Iyer, Subramanya S V, Subramanya Venkat
Founded
2015
Top Mutual Fund Startups in India – Fisdom
Fisdom which is a wealth management startup in India helps in selecting the best mutual fund investment option from the pool. All the recommendations are done on the basis of intensive research. One can see their money round the clock and withdraw money with just a click. They do not charge any fees and one can get free financial advice from their wealth manager.
Jama
Mutual Fund Startup
Jama
Founders
Ram Kalyan Medury
Founded
2016
Top MF Companies in India -Jama
Jama believes in simplifying money and helping people grow their wealth. It applies a simple model by having no hidden fees, no commissions, and no high fees. Jama Wealth is India’s top SEBI RegisteredInvestmentAdvisory, for long-term investing in equity/portfolio/stocks to help with wealth creation & wealth management.
FundsInn provides the user with a problem-free investing experience. It is an AMFI-registered company that offers scientifically chosen portfolios to gain maximum returns. One can compare popular options and then decide. You can also choose a mutual fund portfolio on the basis of the goal you want to achieve.
RupeeVest
Mutual Fund Startup
RupeeVest
Founders
Varun Mundra, Mitul Daga, Mayank Mundra
Founded
2013
Top Mutual Fund Startups in India – RupeeVest
Rupeevest incorporates smart technology to provide hassle-free investing options to users. The portfolios are tailored for better returns. It charges zero fees to the user and is safe and secure.
MutualFundWala
Mutual Fund Startup
MutualFundWala
Founders
Shashikant Bahl (Principal CEO)
Founded
2005
Top Mutual Fund Startups in India – MutualFundWala
MutualFundWala is a Delhi-based company that provides mutual fund investment options through online as well as offline. They basically educate clients about Mutual Funds and understand client’s goals. They assign a relationship manager who then helps clients with additional purchases, changes in SIP, etc.
Wealthy
Mutual Fund Startup
Wealthy
Founders
Aditya Agarwal, Amit Mondal, Prashant Gupta, Somit Srivastava, Tarun Khera
Founded
2015
Top Mutual Fund Startups in India – Wealthy
Wealthy was launched in 2016 and has always worked to make investing easier and simpler for users. It boasts of paperless KYC, algorithm-driven fund selection, and rebalancing of mutual funds. Proper asset allocation and fund selection ensure a balance between risk and rewards. Though they don’t charge anything to invest money but take an annual fee which is 0.2% to 2.2% on the basis of the portfolio.
Nivesh
Mutual Fund Startup
Nivesh
Founders
Anurag Garg, Sridhar Srinivasan
Founded
2016
Top Mutual Fund Startups in India – Nivesh
Nivesh promises to give users a paperless experience of investing in mutual funds. They partner with local businesses that help investors to perform transactions and track performance. Nivesh categorizes mutual funds into broader categories and then curates them as per the needs of the client.
Upraise
Mutual Fund Startup
Upraise
Founders
Varun Gupta
Founded
2016
Top Mutual Fund Startups in India – Upraise
Upraise helps make an investment in mutual funds easier by providing paperless KYC, zero commission, and bank-grade security. One can view their investments 24/7 and withdraw them in just a click without any hassle.
Kuvera is one of the best online platforms to invest in India that helps the user in fund selection, goal planning, tax planning, and rebalancing. It claims to be a truly free investment platform that neither charges from users nor from mutual fund companies. One can invest to achieve goals, save tax, or beat inflation. One more benefit is with one account, you can create investment options for family and relatives as well and also joint accounts.
Invezta believes that healthy investing is everyone’s right. They claim themselves to be pro-investor. They provide users with unbiased portfolio advice that would help them reach goals and get maximum returns. They charge investors with a subscription fee quarter-wise.
ET Money
Mutual Fund Startup
ET Money
Founders
Mukesh P Kalra
Founded
2015
Top Mutual Fund India – ET Money
ETMONEY App, from the house of the Times Of India Group, is a fully integrated mobile platform offering products across all sections of a user’s financial life like Direct Mutual Fund, SIP Investment, ELSS Tax Saving Schemes, NPS, Health Insurance, etc. From managing expenses to tracking your investments, from generating extra income through investments to saving money in taxes, from investing in Smart Solutions to borrowing money during the cash crunch, ETMONEY is a one-stop-shop for all financial needs.
The platform also offers personal finance strategies after taking into consideration your financial goals and your duties. The app also offers solutions for tax savings for free which will help you save up to INR 46,800.
Through this platform, you can also get access to various financial products such as insurance policies, direct mutual fund investments through SIP’s, Instant loans, etc. The app also lets you transfer money into the platform through various UPI payment apps such as Google Pay, PhonePe, Paytm, etc.
The Mutual Fund investments through the app are free of cost. The application is available for both Android and IOS users.
Miles Wealth
Mutual Fund Startup
Miles Wealth
Founders
Bhavin Shah
Founded
2016
Top Mutual Fund Startups in India – Miles Wealth
Miles Wealth is one of the promising mutual fund startups in India, offering a digital-first approach to wealth management. Founded by Bhavin Shah in 2016, the platform provides personalized investment advisory and mutual fund distribution services. It focuses on helping investors build long-term wealth through curated portfolios, financial planning, and SIP recommendations. With a customer-centric model and strong research backing, Miles Wealth is gaining popularity among retail investors. Its mission is to simplify investing for Indians by combining technology with expert advice.
So, this was a list of major mutual fund startup companies in India. Hope this list helps you to have an idea of which platform you can use to invest in mutual funds in India. With a myriad of mutual fund startups to choose from, one can easily invest through a firm that they believe can help them realize their goals. Since mutual fund investments have now become transparent, one can easily manage the various portfolios on their own. One needs to study the market risks involved before investing.
FAQs
What is Mutual Fund?
A mutual fund is a pool of money collected from many investors to invest in stocks, bonds, or other assets, managed by professionals.
How much does it cost to start a mutual fund?
Estimates for initial setup costs alter from $25,000 to upwards of $100,000, depending on the nature of your mutual fund and who sets it up. The costs on an ongoing basis can make it difficult for new mutual funds to turn a profit.
Will mutual funds make you rich?
It’s good enough to help you achieve your monetary goals and at some point become financially independent which in itself is a great thing but if you want to become really rich, just investing in Mutual Funds is not going to make it happen. But investing in stocks is also not going to do it.
Do mutual funds cost money?
Every company that manages a mutual fund charges an annual fee – generally 0.5% to 2.5% of assets – as well as several other expenses. In addition, some funds slap you with a sales charge over and above those fees.
How does the Groww app work?
Groww lets its users invest in mutual funds, including systematic investment planning (SIP) and equity-linked savings. Available on Android, iOS, and the web, it offers more than 5,000 mutual funds, which can be invested in directly from its Groww app.
How many mutual funds are there in India?
As of 2025, there are 44 mutual fund companies in India, offering over 2,500 mutual fund schemes.
Which is the best platform for mutual fund distributors in India?
Top platforms for mutual fund distributors in India are NSE NMF II, BSE Star MF, CAMS Wealth, MF Utilities (MFU), NJ India, and Fisdom. They offer easy onboarding, multi-AMC access, and commission tracking.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Investing a decade ago entailed a lot of paperwork, many bank visits, long queues, and application processing that used to take days. When you add in a dearth of knowledge about financial products and widespread misselling by agents, the experience becomes nothing short of a nightmare.
These days, all you need is a bank account, some disposable income, and a smartphone to begin investing, increasing, and managing your wealth. Though some of the new investors are starting with mutual funds, equities, and other investment platforms, many of the investment-averse citizens were also noticed to step out from it altogether. However, with the emergence of Groww, the investment industry, it seems, has witnessed a laudable disruption with the easy ways of investing money with stockbroking and direct mutual funds that the platform has encouraged.
Here is the Success Story of Groww, an organization that has made investing simple for millions of Indians. Know more about the Founder and History, Startup Story, Mission and Vision, Products, Business model, Revenue and Growth, Funding and Investors, Acquisitions, Awards, Competitors of the Company, Challenges Faced, and other details ahead!
Groww – Company Highlights
Startup Name
Groww
Owner
Nextbillion Technology
Headquarters
Bangalore, Karnataka, India
Industry
Financial technology, Investment, Mutual Funds
Founders
Lalit Keshre (CEO), Harsh Jain, Neeraj Singh and Ishan Bansal
Founded
April 2016
Valuation
Approximately less than $2 billion (November 2024)
Groww is a web-based investment platform that allows users to invest in mutual funds and equities directly. The company is a creator of a mutual fund direct access platform. Groww’s technology is aimed to make investing simple, accessible, transparent, and fully paperless, allowing customers to invest in mutual funds without any difficulties.
Groww users can invest in mutual funds through SIPs and equity-linked savings. According to the company, it has over 1.5 crore registered users; the majority of them are under the age of 40 and prefer to use their phones. It offers over 5,000 mutual funds that can be invested directly through its website and app, which is available on iOS and Android.
It features a straightforward pricing structure that includes cheap trading fees. You can invest in a mutual fund for free with no hidden fees. Groww does not charge an account opening fee or a monthly maintenance cost. Moreover, with Groww’s direct mutual fund plan, you can also earn an additional 1.5%.
Groww offers E-books, Resources, and Blogs that provide stock market essentials and updates to assist investors in making better decisions. One can open a paperless account immediately and very easily. If you want to participate in the primary market, you can submit an online IPO application. A Brokerage Calculator is included in the software.
Groww, which was founded in 2016 by 4 former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, aim to make investment more accessible to young people by simplifying the process. The DIY (Do It Yourself) model, in which individual investors establish and manage their own investment portfolios, is preferred by most millennials.
Lalit Keshre
Lalit Keshre is the Co-founder and CEO of Groww. Keshre was a Btech, Electrical Engineering student in microelectronics from IIT Bombay. He looked after the Product and Engineering of the IITiam Systems. After completing his graduation, Lalit founded Eduflix. He eventually joined Flipkart, where he was in the Product department and served for a little less than 3 years before founding Groww in May 2016.
Harsh Jain
Popularly known as the Co-founder and COO of Groww, Harsh Jain was an IIT Delhi student from where he completed his Master of Technology in Information and Communication Technology. Jain also has an MBA in Product Management and Marketing Technology from the UCLA Anderson School of Management.
Ishan Bansal
Ishan Bansal is another Co-founder of the company. Bansal was a student of BITS, Pilani, from where he completed his BTech in Mechanical Engineering. He has been a Charter Holder from the CFA Institute. Bansal also has an MBA degree in Finance from XLRI Jamshedpur. Ishan Bansal started his career in ICICI Securities. He eventually left the company and joined Naspers Limited as a Manager. Flipkart was the next company that he joined where he was in Corporate Development. After his brief stint with Flipkart, Ishan opted to co-found Groww.
Neeraj Singh
Neeraj Singh is known as the Co-founder and CTO of Groww. Neeraj has a Bachelor’s in Information Technology from ITM University, Gwalior. He then opted for a Post Graduate Diploma in Advance Computing from C-Dac. Singh initially joined JDA Software as a Software Engineer and then opted for Ivy Computech as his company which he started as a Senior Software Engineer. He eventually joined Flipkart in the SDE department and eventually decided to co-found Groww with the other founders.
Groww – Startup Story
The founders of the company witnessed the change in the e-commerce market during their time at Flipkart and realized that investment was the next big opportunity. The e-commerce boom signaled an increase in average income and technology savvy, and it was at this point that the founders realized that individuals indeed have discretionary cash and will need assistance in putting it to good use.
When the founding team started investigating Indian financial options for interested consumers, they spent a lot of time learning about the market and identifying the users’ basic pain concerns. They have to conduct numerous tests to determine the best user experience. Furthermore, the users’ hard-earned money was on the line. This is why they needed to deliver a safe and secure solution, which required some time to develop.
Groww app began as a direct mutual fund distribution platform in 2016 and has since grown to become one of the country’s most popular mutual fund investing platforms. Groww added equities in the early part of 2020 in response to customer demand, and the following year, it launched digital gold, ETFs, intraday trading, and IPOs in rapid succession.
Groww is a Bangalore-based brokerage firm that offers online discount brokerage services for a single charge. Groww can help you invest in stocks, IPOs, and mutual funds directly. Nextbillion Technology Private Limited, a SEBI-registered brokerage, is known as Groww. NSE and BSE both have NTPL as a member.
In India, there are about 200 million people with disposable income, but only about 20 million actively invest. Groww’s goal was to provide consumers with the information, resources, and customer engagement they needed to get started with investing as quickly as possible.
The company’s mission is to give investors the greatest experience possible when it comes to managing their money.
Lalit Keshre, Co-founder and CEO, Groww, said – “Over the last few years, we have made investing in mutual funds and stocks simple and transparent for millions of investors in India. If we look at the opportunity that lies ahead, it still feels like Day 1. We started our journey with small steps writing blogs and making videos to educate people about investing. Our wealth as a nation will keep growing, and our mission is to provide the best experience for investors to manage their wealth. We are happy to partner with investors who believe in our long-term vision.”
Groww – Name, Logo and Tagline
The Groww logo consists of a circle of two colors: Green and Blue. The logo depicts an increasing graph.
Groww Logo
‘There’s just one right way,’ says the company’s tagline. The main goal of the company is to make the investing process as simple as possible for their clients. Investors can choose from a variety of mutual funds, and they can also invest in a variety of schemes with varying market capitalizations.
Groww – Products
The list of the products of Groww include :
Stocks
Mutual Funds
Digital Gold
US stocks
Groww – How to Select the Best Mutual Funds for Beginners
Groww – Business Model
Groww app operates as a commission-free platform, charging flat-fee brokerage on equity and F&O trades, along with regulatory charges like STT, stamp duty, exchange transaction charges, and DP charges. For US stocks, there are no account opening or maintenance fees, but charges apply for forex conversion and exchange fees. Revenue sources include brokerage, interest on deposits, and potential future subscription fees for premium offerings and advisory services.
Groww company charges a tiny fee, however, it is paid by the mutual fund firm, not by the client. They profit from the funds they sell, but it’s a complicated process.
To begin, there are two types of mutual fund investments: regular and direct. In the ordinary mode, a distributor appears, and you must pay the distributor a commission. The commission is calculated in such a way that it compensates you for your investment and profits.
Apps like Groww, on the other hand, give consumers a direct investing opportunity by combining different funds and companies into a single platform, thereby extending a wide range of possibilities.
For a fintech company like Groww, the first thing to keep in mind is to expand the customer base. Groww leverages technology to reach the proper target audience, which lowers its operating costs. People rarely switch between these types of applications. As a result, once the correct customer base has been established, they are likely to stick with you for the long haul.
Groww allows users to invest in mutual funds and equities from anywhere in the world, thanks to its high level of technology. With just a few mouse clicks, you can become the owner of a specific stock or mutual fund.
Groww company recently moved its parent entity back to India from the US, resulting in a reduced fair market valuation of under $2 billion.
In FY24, Groww reported a revenue of INR 3,145 crore, marking a 119% increase from INR 1,435 crore in FY23. Revenue in previous years stood at INR 351 crore in FY22, INR 283.5 crore in FY21, and INR 55.44 crore in FY20, showcasing significant growth over time. Expenses in FY23 were INR 932.9 crore, up from INR 663.6 crore in FY22. The company recorded a net loss of INR 805 crore in FY24, primarily due to a one-time tax expense, contrasting with a profit of INR 448.7 crore in FY23. In FY22, Groww reported a net loss of INR 239 crore.
The company has enhanced its Broking app by introducing the ‘Pay’ feature, enabling users to engage in peer-to-peer transactions and make payments to merchants effortlessly by scanning QR codes.
Groww Launched Intraday Trading and ETFs
Groww is hailed as a platform that is trusted by more than 30 million users. It is a customer-first company that brings ease and trust to the users while investing in Mutual funds, FDs, Stocks, Futures and Options, IPOs, and more. Groww had equities and then launched Intraday Trading and ETFs, expanding their product suite. With the launch of these products that cater to two diverse niches within the investing spectrum, Groww aims to provide a gamut of investment options to millennial investors with varied investment objectives. With intraday trading now enabled on 350+ stocks and select ETFs on Groww, investors can short-sell, place a stop-loss order, and track price movements through candlestick charts within just a few clicks.
On the other hand, ETFs as an asset class can be explored by users who are inclined towards passive investment instruments. With Groww, investors can check all information related to ETFs, such as expense ratio, fund manager details, and scheme objectives, as well as track the live price of the underlying securities on the go.
Groww launched Intraday Trading at a time when stock trading was gaining unprecedented popularity amongst Indians, especially young millennials. CDSL reported that the number of demat accounts with CDSL crossed 25 million only in the previous month, registering a 25% increase against the pre-lockdown numbers. Moreover, since March 2020, mobile trades have more than tripled, as reported in September 2020, according to BSE’s trading data.
Speaking on the launch, Lalit Keshre, Co-founder and CEO, Groww said, “The launch of intraday trading and ETFs on our platform is in line with our promise to provide our customers with all kinds of investment options on a single platform. We already have all the direct mutual funds and gold available on the platform. In the days to come, we will keep adding more features to provide an all-encompassing investing experience”.
Groww also plans to follow this launch with a series of learning modules aimed at educating its investors about the intricacies of intraday trading and ETFs. The company launched stock investing on its platform in June 2020 and has recorded more than 4.5 Lakh Demat accounts within a short span, thereby becoming one of the fastest-growing discount brokers in the country. Currently in invite-only mode, customers will soon be able to invest in US equities on the Groww app as well.
Some other growth insights of the brand can be compiled as:
Groww brags about having 30+ million registered users
The platform has nearly $400 million in investment
Groww is a one-of-a-kind startup that recorded over a 10X jump (from $250-300 million to $3 billion) in valuation in a little over a year in India.
The nearest rival of Groww is Upstox, which recently raised a new round at around a $3.4 billion valuation
It is a worthy competitor of Zerodha
Groww had 6.63 million active clients, approximately 150,000 or 2.3% more than Zerodha at the end of September 2023, breaking the latter’s lengthy reign at the top.
Groww will Foray into the Neobanking Segment
The company is currently looking to foray into the new banking space with a new neo-banking platform that it will likely launch soon. According to one of the sources close to Groww, the company believes that being a neo-banking company will further make it holistic for the users, which want to emerge as a one-stop solution for banking and investment.
Groww to Launch its Lending Arm
Groww is also looking to foray into lending and is in final talks for the launch of another vertical to its offerings, which would be lending, as per the reports dated January 14, 2021. The company will offer credit lines to some users after selecting them based on their transaction histories as per the mobile app usage, which Groww has already started to do. This step might prove to play a great role in multiplying the revenues of Groww, which aren’t that noteworthy so far.
Groww Launched Ab Karega Invest
A growing number of investors from tier-II cities are now taking to investing through online platforms. The company will host conferences in selected Indian cities to make investing simple and accessible.Groww, a leading investment platform, stated that 60% of users registered with them hail from tier 2 and tier 3 cities. In light of this, Groww has launched a one-of-a-kind financial education initiative, “ Ab India Karega Invest”, to bridge investors’ knowledge gap. As per the initiative, the Groww team will tour 52 select cities in 52 weeks and conduct conferences to explain the nuances of investing. The city meets are focused on creating a knowledge-sharing platform for industry players and aspiring investors as well as fostering local investor communities.
As a pilot campaign, Groww previously held meets in Lucknow, Jaipur, and Patna, and the overwhelming reception led to the extension of the campaign PAN India. On the occasion of the launch, Lalit Keshre, Co-founder and CEO of Groww, said, “The penetration of financial services in India is really low beyond metros. Groww is making investing accessible to millions of people in India with a sharp focus on customer experience. For us, there are no boundaries. This program helps us in multiple ways, but the biggest one is to closely engage with aspiring investors spread across these cities in India”.
Groww Receives SEBI Approval
Groww has announced that the startup has received approval from SEBI for the Groww Nifty Total Market Index Fund. This development follows Groww’s strategic move earlier this year when it acquired the mutual fund business of Indiabulls Housing Finance, paving the way for its foray into the mutual fund market. As the competition in India’s mutual fund space intensifies, with formidable players like Groww’s rival Zerodha and Jio Financial Services poised to enter the sector, the landscape is becoming increasingly dynamic.
Groww Gets RBI Licence to Operate as Online Payments Operator
Groww successfully secured an online payment aggregator license from the RBI on April 29, 2024. This license permits the financial services firm to conduct e-commerce transactions via its UPI app, Groww Pay. Notably, Groww has been strategically expanding into the credit and payments space over the past two years to cater to both existing traders and new users. RBI’s regulation of offline payment aggregators marks a regulatory shift, affecting face-to-face transactions via PoS machines and QR codes.
Groww – Financials
In FY24, Groww reported a revenue of INR 3,145 crore, a 119% increase from INR 1,435 crore in FY23. However, a one-time tax expense led to a net loss of INR 805 crore in FY24 compared to a profit of INR 448.7 crore in FY23.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 3,145 crore
INR 1,435 crore
INR 351 crore
INR 283.5 crore
INR 55.44 crore
Expenses
—
INR 932.9 crore
INR 663.6 crore
—
—
Net Profit/Loss
INR -805 crore
INR 448.7 crore
INR -239 crore
—
—
Groww Revenue Breakdown:
Revenue Source
FY24
FY23
Total Revenue
INR 3,145 crore
INR 1,435 crore
Operational Profitability
INR 535 crore
INR 458 crore
Groww’s revenue jumped from INR 1,435 crore in FY23 to INR 3,145 crore in FY24, reflecting strong business expansion. Operational profitability increased from INR 458 crore in FY23 to INR 535 crore in FY24.
Groww Expenses:
Expense Category
FY23
FY22
Total Expenses
INR 932.9 crore
INR 663.6 crore
Employee Benefits
INR 287 crore
INR 230 crore
Total expenses increased from INR 663.6 crore in FY22 to INR 932.9 crore in FY23, mainly due to higher employee benefit expenses, which rose to INR 287 crore in FY23 from INR 230 crore in FY22.
Groww Profit/Loss:
Groww recorded a net loss of INR 805 crore in FY24 due to a one-time tax expense from its domicile shift, in contrast to a net profit of INR 448.7 crore in FY23.
Quick Summary:
Revenue Growth: Grew from INR 1,435 crore in FY23 to INR 3,145 crore in FY24 (+119%).
Operational Profitability: Increased from INR 458 crore in FY23 to INR 535 crore in FY24.
Net Profit/Loss Impact: Due to a one-time tax expense of INR 1,340 crore, Groww reported a net loss of INR 805 crore in FY24, after recording a profit of INR 448.7 crore in FY23.
Expense Increase: Total expenses rose from INR 663.6 crore in FY22 to INR 932.9 crore in FY23, with employee costs being a major contributor.
Groww has raised around $418 million over 7 funding rounds that the company has seen to date. The company recently raised around $25 million in its Series E funding round on March 5, 2023.
Here’s a glimpse of the funding rounds of Groww:
Date
Round
Amount
Lead Investors
March 5, 2023
Series E
$25 million
–
October 24, 2021
Series E
$251 million
Iconiq Growth
Apr 7, 2021
Series D
$83 million
Tiger Global Management
Sep 10, 2020
Series C
$30 million
Y Combinator Continuity Fund
Sep 18, 2019
Series B
$21.4 million
Ribbit Capital
Jan 23, 2019
Series A
$6.2 million
Sequoia Capital India
Jul 9, 2018
Seed Round
$1.6 million
–
Groww – Acquisitions
To date, Groww has acquired only one other mutual fund business, which is Indiabulls AMC. Groww acquired Indiabulls Mutual Fund for INR 175 crore, which includes cash equivalents of INR 100 crore. Groww will be one of the first fintech firms to join the 37 trillion-dollar asset management market as a result of this purchase.
Acquiree Name
About Acquiree
Date
Amount
Indiabulls AMC
Indiabulls AMC is a mutual fund company provides different types of mutual funds, tax saving investments, SIP investments, SIP calculators.
May 11, 2021
$22.99M
Groww acquired a minority stake in the SaaS startup Digio as part of its strategic investment on January 2, 2023.
Groww – Advisors and Mentors
Groww gets Satya Nadella, CEO of the second most valuable company, Google, as its investor and advisor. Groww Co-founder and CEO Lalit Keshre is thrilled about this development and has not missed posting it on Linkedin.
Groww gets one of the world’s best CEOs as an investor and advisor.
Thrilled to have @satyanadella join us in our mission to make financial services accessible in India.
Upstox- They offer nearly identical services and a similar brokerage framework
5paisa- They offer the same services as 5paisa, but their cost is different because they offer zero brokerage trading. 5paisa offers superior service and charges a reduced brokerage fee (INR.10 per order flat)
Flyers- In this situation, the services and pricing structure are the same as those of Zerodha. They do, however, give an API that is completely free.
Angel Broking offers similar services but with a much bigger profit margin.
The industry has risen at a pace of 12.5% per year over the last ten years, which is more than double the world growth rate. However, India’s mutual fund asset base as a percentage of GDP is only 11%, compared to the world average of 62% this year. Individual investor demographic data suggests that 48% of somewhat older millennials (aged 29-37) participate in equities, whereas only 4% of the young generation (aged 22-28) do so.
Due to the perceived complexity and the need to have advisors on hand at all times to navigate the dangers, as well as the dread of the hazards, young or first-time investors are hesitant to enter the market. The challenge, according to the founder, was to not only alleviate these concerns but also to educate them. Here’s where digital services like PhonePe, GPay, Paytm, and others have made a huge difference by combining a simple user interface with interactive instructional content.
Groww clearly displays a variety of goods to potential investors, together with the corresponding risk level and historical performance. It also provides consumers with a comprehensive summary of all mutual fund facts, which helps to educate them.
Groww – Future Plans
Groww’s IPO may materialize “somewhere down the line,” hinted co-founder and CEO Lalit Keshre during an event in New Delhi in October 2024. While he acknowledged the possibility, he refrained from providing a specific timeline, stating, “Maybe in some time. It’s somewhere down the line, but we don’t know when.”
With India’s IPO market thriving, numerous companies are growing the nation’s strong economic growth to go public.
FAQs
What does Groww do?
Groww is an online investment platform that allows users to invest in mutual funds and equities directly. The company is a creator of a mutual fund direct access platform.
What is Groww launch date?
Groww app was launched in April 2016.
What is Groww business model?
Groww app operates as a commission-free platform, charging flat-fee brokerage on equity and F&O trades.
What is Groww tagline?
There’s just one right way, is Groww tagline.
When was Groww founded?
Groww was founded in 2016 by 4 former Flipkart employees: Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal.
Which companies do Groww compete with?
The top competitors of Groww are Upstox, Zerodha, Upstox, IIFL, Finvasia, Angel Broking, SAS Online, Sharekhan, Edelweiss, and Karvy Stock Broking.
What are the Groww app charges?
Groww offers accounts for mutual fund investments with zero transaction charges, no redemption charges, or any other hidden charges. Furthermore, it also offers free account opening facilities that requires zero maintenance charges.
By selling a nearly 4% share in the retail chain for INR 275.88 Cr in a block deal, e-commerce giant Amazon has left Shoppers Stop. According to NSE statistics, on December 18, Amazon.com NV Investment Holdings sold 43.95 lakh Shoppers Stop shares for INR 627.6 each. Morgan Stanley Asia Singapore, 360 One, Kotak Mahindra Mutual Fund, and Tata Mutual Fund all snatched up the shares that were flooding the market. Kotak Mahindra Mutual Fund and Tata Mutual Fund purchased 9.56 lakh and 19.12 lakh shares, respectively, while Morgan Stanley purchased 6.37 lakh shares. In the meantime, 360 One, an asset management firm, paid INR 627.6 per share for 6.44 lakh shares. Through its chain of stores, Shoppers Stop offers a variety of products, including furniture, home décor, kids’ and baby care items, branded clothing and accessories, and cosmetics.
Changes in FDI Norms Transformed the Business Dynamics
It is important to remember that for the past five years, Amazon‘s ownership of Shoppers Stop has been an issue of dispute. In September 2017, the e-commerce giant’s investment arm initially revealed that it had paid INR 179.25 Cr to acquire a 5% minority, non-controlling stake in the business. Amazon then requested approval for the deal from the Competition Commission of India (CCI) in December 2017, and the watchdog gave its approval in January 2018. However, the Centre announced amendments to the rules governing foreign direct investment (FDI) for e-commerce platforms in December 2018. These changes effectively barred big online marketplaces from having exclusive product releases or controlling the inventory of their partner vendors. Shoppers Stop stopped selling its products on Amazon in February 2019 once the new regulations went into force. As it forges a new path in India, Amazon has now sold off its share in the chain of retail stores after almost five years.
Amazon India Currently Navigating Through Troubled Waters
Amazon has been attempting to fizz off fires on numerous fronts, and this stake sale is part of that strategy. The e-commerce giant and competitor Flipkart were found guilty of violating antitrust laws by giving preference to specific suppliers in an internal CCI investigation earlier this year. In the meantime, other Amazon merchants have challenged different parts of the CCI’s probe and taken the competition watchdog to different courts.
However, on December 16, the Supreme Court stated that it believed the Karnataka High Court should handle all complaints brought by sellers connected to Amazon and Flipkart against the Competition Commission of India’s (CCI) inquiry into purported anti-competitive conduct.
In India, there is hardly anyone who hasn’t heard about LIC. The line ‘Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi’ is a part of our childhood as well as adulthood. From radio to television, to newspapers, and the internet, it is anywhere and everywhere, and honestly, with its presence on every media platform, it is quite hard to not get noticed.
Life Insurance Corporation owns LIC and comes under the Ministry of Finance. It is India’s biggest life insurance company and has over 70% of the market share.
LIC was founded in the year 1956 and since then has played the role of a constant supporter for most of the people seeking life insurance in India. The importance of life insurance is growing throughout the country.
LIC can grow at a faster rate if the organizational and operational efficiency of LIC can be improved, new kinds of insurance covers are introduced, its services are extended to smaller lesser-known places and the general price level is kept stable. LIC’s assets under management (AUM) have increased by 16.48% year-on-year, reaching INR 51,21,887 crore by the end of March, up from INR 43,97,205 crore at the end of FY23.
Now LIC is not just an insurance company anymore, it has many subsidiaries that serve different sectors. In this article, we will find out about the subsidiaries of LIC. So let’s get started with it.
This subsidiary of LIC was established in the year 1989 and is said to be one of the biggest Housing Finance Companies in the country. They provide long-term financial services to their consumers so that they can purchase or construct their choice of residence. The headquarters is situated in Mumbai and it has over 2103 people working under it as of 2019.
Apart from that, the company also provides finance to the people who want to renovate and repair their residential places. LIC Housing Finance went public in the year 1994 and has over 450 centers across the country. As of 2023, LIC Housing Finance revenue is 200 billion INR.
LIC International
LIC Subsidiary
LIC International
Established
1989
Headquarters
Manama, Bahrain
Revenue
–
LIC Subsidiaries – LIC International
Established in the year 1989 on the 23rd of July in Bahrain, the main objective of this subsidiary of LIC is to provide life insurance to the Indian people living in the GCC countries. As of now, LIC International is operated in four countries, that is Bahrain, Kuwait, Oman, and UAE.
Apart from this, LIC also has a license to sell life insurance to people from any other country in some selected markets. As of 2016, LIC International is said to be a billion-dollar company that ruled the Kingdom of Bahrain for several years. Such is the impact that it has won several awards amongst them, it has won the MEIF 2012 award from the Central Bank of Bahrain.
LIC Cards Services
LIC Subsidiary
LIC Cards Services Limited
Established
2008
Headquarters
New Delhi
Revenue
INR 8.2 trillion (2023)
LIC Subsidiaries – LIC Cards
This subsidiary was established in the year 2008 on the 11th of November. LIC launched its Credit cards in the market. Four different types of credit cards are offered here with some common features and some distinct features that make them unique. It is mainly suited for those who pay a large LIC premium. The cards offer lots of unique features to its users and attract users by providing reward points and cashback.
The headquarters is situated in New Delhi, India, and the total revenue as of the company is INR 8.2 trillion (2023).
The types of LIC cards are:
LIC Gold Credit Cards (for regular users)
LIC Platinum Credit Cards (for shopping and rewards)
LIC Titanium Credit Cards ( for travel and hotel booking)
LIC Signature Credit Card (for premium services)
Fee/Charge
Amount/rate
Finance Charges on Revolving Credit and Cash Advance
3.25% p.m. (46.78% annual)
Free Credit Period
Free Credit Period Up to 50 days
Cash Withdrawal Fee
2.5% of the amount withdrawn (min. Rs. 500)
Cash Payment Fee
Rs. 100
Over Limit Fee
3% of the amount (min. Rs. 500)
Foreign Currency Mark-up Fee
3.5% of the transaction amount
There are certain criteria that the financial institution looks into before accepting your credit card application. Your credit score, age, monthly income, location, etc. are some of the parameters that you should keep in mind before you apply for a credit card. To apply for an LIC credit card, you should be over 18 years old and should either be an LIC agent or an LIC policyholder. The documents required to apply for an LIC credit card are:
Proof of Identity: PAN Card, Aadhaar card, Driver’s License, Passport, Voter’s ID, Overseas Citizen of India Card, Person of Indian Origin Card, Job card issued by NREGA, Letters issued by the UIDAI.
Proof of Address: Aadhaar card, Driver’s License, Passport, Utility Bill not more than 3 months old, Ration Card, Property Registration Document, Person of Indian Origin Card, Bank Account Statement.
Proof of Income: Latest one or 2 salary slips (not more than 3 months old), Latest Form 16, Last 3 months’ bank statement.
LIC Mutual Fund
LIC Subsidiary
LIC Mutual Fund
Established
1989
Headquarters
Mumbai
Revenue
INR 59.88 crore (2022)
LIC Subsidiaries – LIC Mutual Fund
LIC Mutual Fund Ltd. started its journey in April 1989; it is a direct subsidiary of LIC and is one of the premium brands that provide financial security services to its customers. It is said to be managed over INR 15002.38 crore worth of assets. It offers a total 25 numbers of schemes. The Headquarters is situated in Mumbai, India and the company’s revenue was INR 59.88 crore (2022). Dinesh Pangtey is the CEO of LIC Mutual Fund Ltd.
LIC Pension Fund
LIC Subsidiary
LIC Pension Fund
Established
2007
Headquarters
Mumbai
Revenue
–
LIC Subsidiaries – LIC Pension Fund
LIC Pension Fund Limited is India’s first pension fund. Established in the year 2007 on November LIC Pension Fund is the Subsidiary of LIC and is considered India’s first pension fund. This fund is to secure the future related to the finances of the people after their retirement. LIC is one of India’s three public sector pension fund managers and has a one-third share in all investments made through Central and State Government NPS. It is also open to the private sector as a fund manager. LIC Pension Fund is the first Pension Fund Company in India to be incorporated and to receive a commencement of business certificate.
These four schemes are provided by the LIC Pension Fund. There is Jeevan Shanti, LIC Jeevan Akshay-VII, Pradhan Mantri Vaya Vandana Yojana, and Saral pension. Its headquarters is situated in Mumbai, India. Smt. Priti Panwar is the current CEO of LIC Pension Fund Ltd.
The government of India introduced the New Pension System (NPS), with effect from 2004. Pension Fund Regulatory And Development Authority (PFRDA) through a process of competitive bidding, has appointed Life Insurance Corporation (LIC), State Bank of India (SBI), UTI Asset Management Company (UTI –AMC), and as The Pension Fund under the NPS. “NPS-Lite Model” is designed to ensure ultra-low administrative and transactional costs, to make such small investments viable.
National Pension System NPS Lite makes pensions possible for small investors. It is an initiative of the Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by the Government of India to regulate and develop the pension sector in India. NPS extends help to the weaker and economically disadvantaged sections of society with their limited investment potential. This is why PFRDA has launched NPS Lite to specifically target marginal investors and promote small savings during their productive lives. It also aims at building up a corpus sufficient enough to buy an annuity for their old age.
IDBI Bank was established in the year 1964 and has been providing banking and financial services since then. Apart from that, they are constantly offering digital services to their customers and have a wide range of ATM networks all across the country. In 2019, RBI has categorized it as a private bank.
As of September 2023, IDBI Bank has over 18,283 employees working for it and the bank has 2005 branches and 3353 ATMs all across the country as on 26th April 2024. Apart from that, it also has one overseas branch in Dubai. Since 2018, Rakesh Sharma has been the CEO of IDBI Bank.
IDBI Bank Ltd., as a full-service universal bank provides a wide amount of financial products and services encompassing deposits, loan payment services, and investment solutions. The Bank also has an established presence in associated financial sector businesses including capital market, investment banking, and mutual fund business. IDBI’s very business philosophy is to provide relevant financial solutions and ensure maximum customer convenience through easy access to branches and ATMs as well as digital offerings and excellence in customer service.
The vision is to be the most preferred and trusted bank enhancing value for all stakeholders defining and shaping our day-to-day business, helping us to build long-lasting relationships. IDBI Bank Limited has been categorized as a ‘Private Sector Bank’ for regulatory purposes by the Reserve Bank Of India with effect from January 21, 2019, consequent upon Life Insurance Corporation Of India acquiring 49.24% of the total paid-up equity share capital of the bank. To cater to its ever-expanding needs, IDBI Bank has formed subsidiaries and joint ventures across diverse areas of the Banking and Financial System.
Some of its subsidiaries are:
IDBI Subsidiaries
IDBI Capital Markets and Securities Limited (ICMS)
Its businesses include Merchant Banking, Stock Broking, Distribution of Financial Products, Corporate Advisory Services, Debt Arranging and undertaking, Portfolio management of pension, and Research Services.
IDBI Intech Limited (IIL)
The major business activities of the company are Information technology services, information security practices, a national contact center, and an outbound sales team.
IDBI Asset Management Limited (IAML)
IAML is the investment manager of schemes launched by IDBI Mutual Fund. The Fund offers a bouquet of product inequity and risk profiles of investors.
IDBI Trusteeship Services Ltd (ITSL)
The company operations are acting as trustees to securitization transactions, acting as Bond/Debenture trustees, Security trusteeship assignments, Share pledge Trustee, Venture Capital Fund, Safe Keeping, and other trusteeship services.
IDBI Federal Life Insurance Company Limited (IDBI Federal)
The Company’s life insurance business comprises individual life and pension and group life, including non-participating, health, and linked segments.
LIC has established itself as a brand in India, with so many subsidiaries; it has been trying to keep up with its name of being one of the biggest companies in India. It is doing everything, from providing mutual fund services to banking services to pensions as well. LIC is taking every chance to serve its customers in the biggest and best way possible and take the company to the top.
FAQ
When was LIC established?
LIC was established in the year 1956.
Is LIC government or private?
LIC is a government organization and the government of India owns a 100% stake in the insurance company.
What is the subsidiary of LIC?
IDBI Bank, LIC Mutual Fund, LIC Pension Fund, LIC Housing Finance, LIC Cards Services, and LIC International are some of the subsidiaries of LIC.
How many types of Cards does LIC provide?
LIC provides 4 types of cards as below:
LIC Gold Credit Cards (for regular users)
LIC Platinum Credit Cards (for shopping and rewards)
LIC Titanium Credit Cards ( for travel and hotel booking)
The article has been contributed by Nehal Mota, Co-Founder & CEO, Finnovate.
Talk of exemplary women entrepreneurs in India, and the names that come to mind are Kiran Mazumdar Shaw, Falguni Nayyar, and a few others. Today, the landscape for women entrepreneurs has vastly changed. Several young women entrepreneurs are emerging; who prefer the challenges of striking out on their own, over the security of a full-time job. However, the more things change, the more they remain the same.
What has not changed is that women must look at their finances more carefully and closely. It is not enough to have an insurance cover and a bank balance. You need to defend your financial turf and ensure that your wealth grows. The challenge is a lot more pronounced for women entrepreneurs. They do not have a secured income in business and while costs are front-ended, revenues and profits tend to be back-ended. Secondly, women need to look at multiple asset-class exposures to combine security, steady income, and capital growth. While there is no royal route, here is a Financial Fitness Planning model that women can explore.
Start off with a Financial Fitness Plan
The word Financial Fitness Plan sounds esoteric. However, a women entrepreneur living amidst uncertainty on the flows side deserves greater certainty of the future. While you cannot predict outcomes, you can plan for it. The Financial Fitness Plan must be predicated on the troika of asset allocation, regular investing, and the power of compounding. This ARC model lies at the core of what women entrepreneurs should follow. Asset allocation is the mix of equity, debt, and other assets. We will look at this point in greater detail later. Regular investing is about syncing investment outlays with your inflows via SIPs and syncing SIPs with goals. Lastly, compounding is the discipline and persistence of staying invested for the long term, since it is time and not timing that generates wealth in the long run.
First Building Block – Pay Yourself Adequately
Being a women entrepreneur calls for a high level of financial discipline. It essentially means that you cannot afford to splurge money on conspicuous consumption. However, there are basic necessities you have to take care of. Also, you have just one life to live, so as well make the best you can on a budget. One way to set the discipline is to allocate about 10-15% of your income flows to yourself. Here the focus should be on prioritizing. Put your needs first, since they are not negotiable. Once you are done with the needs, see how much of your wants and limited indulgences you can manage to address. Remember, the allocation of 10-15% here is the outer limit, so don’t exceed that limit.
Second Building Block – Get Adequate Insurance
Some insurances are optional but some are mandatory. Health coverage is mandatory since you don’t want to imperil your finances by paying medical bills. Start off with an adequate family floater health cover of Rs. 10-15 lakhs at the bare minimum. To save money on larger covers, go for a base plan plus a super top-up, so the deductible makes the plan economical. Do you really need life cover? If you have dependents, then life cover is mandatory for financial security for your family. In case you have a home loan or other liabilities, it makes sense to add term covers to cover such liabilities also. Insurance not only saves you the shock of sudden outflows but also protects the integrity of your assets and your Financial Fitness Plan.
Women and Tax Saving Investments
Third Building Block – Set Aside an Emergency Fund
If you suddenly need cash to attend to a family emergency or need to travel or take care of an ailing relative; you do need an emergency fund to fall back upon. How much of an emergency fund to create? Ideally, don’t create an emergency fund that is more than 6-12 months of your expenses. Set this aside in a liquid mutual fund so that it continues to earn some returns even as the fund remains idle and liquid. However, this should be the base level of emergency fund to always maintain and this money cannot be used for any other purposes. More importantly, if you draw down your emergency fund for a family exigency, make it a point to immediately replenish it. You can also fall back on this fund if business flows go into a temporary downcycle.
Fourth Building Block – Time to Plan a Roof over Your Head
One of the core building blocks to long-term security, apart from insurance, is your own home. With your own home, you don’t worry about changing residence or wondering what to do if you cannot afford to pay the rent. The quality of life matters a lot and hence you cannot compromise on that. The own home ensures that you have an asset to fall back upon, even at a later stage in your life. For that, you need to start planning early so that you have the resources to pay the upfront payments and the monthly EMIs. Start this quest when you are still in your late twenties, so your EMIs are completed early. About 30-35% of your total income can be set aside for paying for the home.
Last Building Block – Take Calculating Risks in Investing
You cannot go too far by investing in gold and bank FDs. They offer portfolio hedge and asset security, at best. Women entrepreneurs must leverage the power of equities. As an entrepreneur, you perfectly know that returns and risk are correlated and you need to extend that business argument to your investment strategy too. As we said earlier, use the equity mutual funds route to get a diversified package and adopt a SIP approach. That is less risky, more disciplined, and more fruitful in the long run.
There is one more suggestion. In a career spent chasing your business goals, you often overlook your personal goals like travelling, social work, arts, etc. It is never too late to undertake such activities and see if you can set aside about 10% for financial freedom, so you can pursue such ideas in the future! That is a positive way to end the thought process.
Nowadays, people are working for future prosperity, where something you have earned in the present will reflect as a beget in the future; that too something huge in return.
Have you heard of Mutual funds, where a pool of money is collected from many investors to be funded in securities, bonds and other money market instruments? A Mutual fund plays as an investment as well as a company. Mutual funds works, where you as an investor buy a unit of share of a part of the mutual fund say as, portfolio’s value. Therefore, technically, the investor buys partial ownership of the company and its assets.
If the funded amount showed positive returns which highly depends on the securities the investors decided to buy, then the investors receive profit, while in the case of deprivation in the return; vice-versa. The investor of mutual funds earns their returns in three different ways such as- dividends, Capital gain and a hike on the mutual fund’s scheme.
Most prevalent mutual fund schemes in India where investors participate in stock markets in the long run because the return in those markets is comparable high to others.
Sector-specific fund
These mutual funds have high risk in terms of high potential return, where the investors fund their money in specific sector segments such as mining, banking, infrastructure etc.
Index funds
Index mutual funds are a medium risk factor, to those who don’t want any fund manager to manage their returns.
Tax saving funds
These funds are a tax deduction, where these investments have a 3 year lock-in period that plays as tax benefits to the investors.
Debt Funds
These ilk of mutual funds are credit risk, which has a low-risk appetite as well as low outcome. Debt funds are suitable for those investors who are coveting steady income from the fixed investment such as Government bonds or debentures.
Money Market Funds
Investors who are seeking reasonable returns in the investment over a short period of time can enroll into money market funds. Moreover, it has a low-risk factor where the return comes in liquid form so it will be a reasonable return on investments.
Hybrid Funds
It is similar to Balanced funds, despite the proportion of equity assets being juxtaposed to balanced funds. This kind of mutual fund is highly recommended to retired or geriatric who expect low risks.
Balanced Funds
Balanced mutual funds divide the investment between equity and debt mutual funds, where moderate returns with comparatively low risk vary according to the market risks.
Open-ended funds:
Here, the investor can enter, redeem or exit at any point in time because an open-ended mutual fund doesn’t have any fixed maturity period
Close-ended funds
Close-ended funds have a fixed maturity date, so the investors can only enter into the market during the initial period of any mutual funds scheme known as the new fund offer; Furthermore, their investment can be redeemed only when the maturity period expires.
Gilt funds
These mutual funds invest only in Government securities, which has no credit risk associated with their investment but has a high interest risk rate.
Mutual fund value as a part of individual wealth in financial assets
The mutual fund industry in India was established back in the year 1963 at the launch of Unit Trust of India by the Government of India. The first very step to the millennials happened in 1964, where UTI introduced the first mutual fund scheme in India and public sector enterprises likewise SBI, Punjab National Bank, Indian Bank, and Bank of Baroda entered the scheme, which was worth 6,700 Crores at the end of 1988.
After a great heyday in India regarding mutual funds, the industry colluded to open a portal for the private sector and by 1993 onwards India has burgeoned in the Mutual fund Industry.
According to the statistics, it is reported that the Indian mutual fund industry had assets under management of 31.43 trillion as of March 2021 which resulted in a jump of 41% in fiscal 2021.
Recent changes by SEBI in the Mutual Fund Industry in India
In June 2021, some amendments were made to SEBI regulation 1996, where they should comply with those new rules of the mutual funds’ stated by 1st September 2021. The mutual fund is required to share details of risk, performance, outcomes, portfolio to investors only for the scheme they have invested in.
Major Players in the Mutual Fund Industry in India
The money invested in the mutual funds is managed and the schemes are operated as per the regulations of mutual funds by entities registered under the companies act for this specific purpose and they are known as Asset Management Companies. The major AMC offering services in India 2021 are:
Current Condition of the Mutual Fund Industry in India
The Mutual Fund Industry’s Assets Under Management (AUM) saw a rise of 41 per cent in FY 2021. As of 30th June 2021, the AUM was valued at INR 33.67 trillion. In fiscal 2021, the biggest attraction was the corporate bond funds with net inflows of INR 3,299 crore. The highest net outflows of INR 28.923 crore were seen in credit risk funds.
Conclusion
Indian People are big fans of Cricket and the players too. And these cricketers are big fans of Mutual Funds or it seems as they say “mutual funds SAHI HAI!”. The mutual fund industry is rapidly growing and the SAHI HAI campaign that was launched in 2017 has contributed a lot to this growth as people are aware of mutual funds and results in investor education.
The first quarter of FY 21-22 added 12 lakh investors to the fast-growing mutual fund industry in India. As more people learn about the benefits and security provided by mutual funds, the industry is expected to see favorable growth in the coming years.
FAQ
What is the mutual fund industry?
Mutual Fund Industry are the companies that pool money from various investors and invests the money in securities like stocks, bonds and short term debt. A portfolio is the combined holdings of the mutual fund of the company.
What is the total revenue of the Mutual Fund Industry in India?
As of 30 June 2021, the AUM (Assets Under Management) of the Indian mutual fund industry is around INR 33.67 trillion. The AUM of the Indian Mutual fund Industry as of 30 June 2016 was INR 13.81 trillion. The industry has seen a two-fold increase in the span of 5 years.
Who is governing and regulating the mutual fund industry in India?
Mutual funds are primarily regulated by the Securities and Exchange Board of India (SEBI). The approval of the Reserve Bank of India (RBI) on a mutual fund is required to provide a guaranteed returns scheme. The Ministry of Finance of India acts as the supervisor of the RBI and SEBI. The mutual funds are regulated by SEBI, RBI, the Companies Act, Indian Trust Act, Stock exchange and the ministry of finance.
Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. The company was founded by Motilal Oswal and Raamdeo Agarwal in 1987 as a small sub-broking unit, with just 2 people running the show. The company is listed on BSE and NSE stock exchanges. The company offers loans for home, construction, composite, improvement, and extension in India
The company entered into investment banking in 2005, followed by private equity fund in 2006. The company focuses on customer-first attitude, ethical and transparent business practices, respect for professionalism, research based value investing and implementation of cutting edge technology. Which have enabled the company to blossom into an over 6000 member team. On January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named as Motilal Oswal Asset Management Company (MOAMC).
Today we are a well-diversified financial services firm offering a range of financial products and services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking,Private Equity, Commodity Broking, Currency Broking, and Home Finance.
They have a diversified client base that includes retail customers, mutual funds, foreign institutional investors, financial institutions and corporate clients. They are headquartered in Mumbai and as of September 2020, had a network spread over 550 cities and towns comprising 2500 plus Business Locations operated by their Business Partners.
Read on to know more about the different Motilal Oswal business models and how you can work with them!
Motilal Oswal Franchise model is one of the multiple business models this full service stockbroker has to offer to potential business takers. The broker claims to have a presence in around 570 cities and 2200 plus locations across different parts of the country. Furthermore, there are around 2300 business partners associated falling in one business model or the other. It entered into the foray of franchising in the year 1999.
Motilal Oswal has a partner strength of more than 1400 through its various business models and provides services at both retail and institutional levels such as Motilal Oswal Demat Account opening Motilal Oswal offers sub broker business models through which their approach towards business partners is that of being an extension of their brand and an extension of the family. This full service stockbroker claims to provide the following benefits to its business partners:
Back office Support – Helps in Risk management and Business operation Assistance.
Stock market research and advice – helps in research reports, Advisory, strategies.
Business development opportunities – helps in onboarding assistance, mentorship programs and Technology support through an exclusive mobile app.
Technology assistance through trading products – helps in trading platforms and portfolio tools.
You can be a Motilal Oswal business partner in the following ways:
Franchise
Individual or businesses that are looking to expand their financial footprint can opt for the Motilal Oswal franchise model. You need to have a requisite office space along with a small team that can handled day to day operations. Entrepreneurs who think they have a dream to grow big and have the passion and the capability to pursue the journey towards their dream. With all the initial expenses taken care of, you get a revenue sharing of 60% of the brokerage generate by them.
The eligibility for this model are good and consistent reputation in the financial space, a refundable deposit of INR 3 lakh to be made to the full service stockbroker and an experience of 2 to 3 years in the streams of broker or sub broker. They must also have a minimum investment of INR 5 lakh to INR 10 lakh at the onset with reasonable wallet for infrastructure related expenses and an area of 150 to 200 sq. ft. to set up an office in a year.
Benefits of joining Motilal Oswal are:
Comprehensive Business development Initiatives.
Strong Mentorship form Senior Management.
Robust Back Office and Operations Support.
Solid Research and Solid Advice.
How Motilal Oswal will build your business:
Superior Technology Platform for Multiple Products.
Dedicated Onboarding and Engagement Services.
Time tested and proven New client Acquisition strategies.
Full proof client shifting/business migration process.
Employee to Entrepreneur
This program is specifically for people who are either an employee at a stockbroking house or have a reasonable experience in the stock market. The eligibility criteria for this business model is that you must either be an employee of any stockbroking company or must be direct stockbroking experience. It’s for those who want to start their own business. Even in this model you get to keep a specific percentage of the overall revenue generated through your addition to the program. This percentage can range from 30% to 40% of the overall revenue.
The benefits under this model are:
No limits to your career growth.
Opportunity to create a legacy for your future generations.
Extend your working life with your own business.
Customize your business according to your area of expertise.
How Motilal Oswal can help in the employee to entrepreneurs sector:
Get insights from our entrepreneurial experience of growing a broking business.
Get a product suite to fulfill every need of your client.
Get access to our famed Solid Research and Advice.
Get readymade Back Office Infrastructure and Risk Management Systems.
Remisier
This business model of Motilal Oswal does not require any upfront capital expenditure to set up the business. An individual looking to spend nothing on the office infrastructure cost may try out this business model. The idea is simple, they provide interested business leads to Motilal Oswal and brokerage generated from the converted clients will have a share for the remisier. However the broker claims that it will provide all kinds of tools, research and other related assistance for client/lead acquisition.
The eligible criteria for setting up a remisier business model with Motilal Oswal are reasonable reputation and hold of potential client base in the financial space, sales experience of at least 2 to 3 years of financial products, an operational expense capacity of INR 1 lakh. Entrepreneurs wanting to set up their business at no capital cost and largely work independently.
The benefits of this model are:
Build your business with minimal costs.
Complete infrastructure support available.
No initial set up costs. Robust advisory support.
Dealing support at branches.
How Motilal Oswal can help set up their business:
Zero Infrastructure and support costs.
Superior Technology Platform for multiple products.
Support at local branches for dealing.
Support for new client acquisition.
Motilal Oswal Products and Services
Channel Partner
This business model of Motilal Oswal channel partner is more of a collaboration with the broker rather than working under the broker. In case you are already working with a specific set of clients for stock market trading, then you may choose to opt for this business model. The idea, in this case is to offer the existing client base of yours with other potential investment opportunities apart from the ones they are already into.
The eligibility criteria in case of a channel partner program is an active set of clients trading or investing in the stock market. Since channel partners are going to bring investor base to the full service broker, they get better revenue sharing on new investment products sold (which is anything from 50% to 60%). Those who would like to collaborate with us to cater to a wider range of clients and partake in the revenue pie of the complete financial intermedia on opportunity.
Benefits of being Motilal Oswal channel partner:
Comprehensive business development initiatives.
Strong mentorship from senior management.
Robust back-office and operations support.
Solid research, advice and advisory products.
How Motilal Oswal help build your business:
Superior technology platform for multiple products.
Dedicated customer acquisition and Engagement Services.
Staffing & training support.
Multiple Assets – one stop shop for your clients.
Digi Partner
It is a unique partnership model where you’re end to end business right from acquiring clients, account opening, business operations, product suggestions, advisory product Investments, and moderation is done digitally. As the name suggests, Digi-Partner is a unique partnership model where you’re End to end business right from acquiring clients, account opening, business operations, product suggestions, advisory product Investments and moderation is done digitally.
Benefits of joining Motilal Oswal Digi Partner:
No compulsion of office infrastructure.
Online Funds & Securities pay-in and pay-out facility.
Call-N-Trade dealing service support.
Easy client account opening plus lucrative brokerage.
How the company can help you build your business:
Extended business development support.
Dedicated reactivation desk.
Technology support with Uppermost.
Multiple asset classes to cross sell.
Motilal Oswal – FAQs
What is Motilal Oswal Sub Broker Commission?
Taking into account the entitlements, precisely in terms of the revenue, there is a higher ratio of revenue that you will retain. There is a flexible revenue sharing provided by the stockbroking house, where 60% – 80% is provided to the sub-broker.
Which is the cheapest brokerage in India?
5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to compete with the fast-growing discount broking industry.
What is the lowest brokerage charges in India?
The minimum brokerage charge by the full-service brokers is the minimum commission they charge for trading with them. With a brokerage of 0.50%, if the total trade value is less than INR 7000, you will pay the minimum brokerage amount of INR 35.
Which broker is best in India?
Zerodha is one of the best brokers in India.
Who owns Motilal Oswal?
Passionate Investment Management Private Limited is the parent organisation of Motilal Oswal.
The digital fintech startup Paytm has recently announced that it has launched a platform for its users to learn about investing. It has launched a video-based wealth community platform(Currently in beta stage) for the users to learn investing. Let’s look at the further details of the New Community Platform Launched by Paytm for Learning Investments.
Paytm is an Indian based multinational startup company. They are an e-commerce payment system and a financial technology company that has its headquarters located in Uttar Pradesh, India. The company was founded in the year 2010.
The abbreviation of Paytm stands for “Pay Through Mobile” and it encourages it with its famous tagline ‘Paytm karo’. The company was founded by Vijay Shekhar Sharma. Some of the company’s products are Paytm Mall, Paytm Payments Bank, Paytm Money, Gamepind, Paytm Smart Retail.
The services offered by Paytm are Payment systems, digital wallets, mobile payments banking, online shopping, etc. Some of the key investors of the company are Ant Group, SoftBank Vision Fund, Warren Buffet’s Berkshire Hathaway, etc.
Paytm Wealth Community
On 26 April 2021, Paytm which is one of the largest fintech companies in India announced that it has launched a platform that is a video-based wealth community to revolutionize the Indians to learn, discuss and trade in the capital markets.
Paytm Wealth Community is considered to be India’s first community which will be based on investing. The platform will be video based and there will be live sessions conducted for the users of the community to ask doubts and discuss on the topics.
The live sessions will be conducted by the industry experts and will cover a wide range of topics for the users such as stocks, futures and options, ETFs, Mutual Funds, IPO, Gold, Fixed Income and Personal Finance.
Paytm Wealth Community
The platform will provide a chance for users to learn from the experts in the industry, discuss their doubts with them and also chat and grow together with their fellow learners. The users on the platform will discuss on various wealth related topics.
In today’s world, the way the youth learn, interact and transact has seen a rapid evolvement. The social interaction between peers has been greatly influenced by the growth of apps and other social media platforms.
It is seen that the social media platform and communities on various other sectors have seen a considerable growth, the digital platforms communities and groups have grown over the years, but there has not been a trustworthy digital platform and a reliable platform for wealth management.
Paytm intends to cover it up and build a trustworthy and reliable wealth management platform for the youth through its new community. It is taking a step to fulfill the requirements of the Indian Investors by launching the platform.
The platform will contain live video content with an interactive chat platform and creators are planning to conduct the sessions for a time period ranging from 30 minutes to 60 minutes. The sessions are expected to be launched in various languages such as Hindi, Gujarati, English and many more.
The platform is under beta testing and Paytm has onboarded a limited set of users. All the creators will have to go through a KYC process which will be a step for ensuring the safety of the retail investors. All the contents will be recorded and checked.
The roadmap of the product and technology is expected to completely transform the user experience. Over the period of time, the users will be able to create a customized discussion room by setting up their creator account and will also be able to chat in a controlled environment.
Paytm expects that the next 100 million capital market investors will be originated through investment communities and social groups and the wealth community of Paytm intends to be a leader and helping the investors to save, trade and invest better.
Beta testing
Paytm has said that users who have received the access to the wealth community launched by Paytm will be able to see a calendar that will have a list of the video sessions available on the platform. The beta testing feature is expected to be for the period of two months and later it will be opened to access to all.
The CEO of Paytm money, Varun Sridhar said that Paytm money was a natural choice by the company for its beta testing platform for the wealth community. Paytm money has direct access to a broad range of investment communities and has a reach across India.
Paytm Wealth Community also offers an opportunity for the experts in the industry to create a personal brand by creating their content and sharing their knowledge with millions of budding investors. This will be a platform to create a personal brand in the capital markets industry.
The company is supporting anyone with the required skills and has a significant social impact to create a personal brand. For starting the registration process, they will have to mail to pwc@paytm.com.
FAQ
Who is the current owner of Paytm?
One97 Communications Ltd is the owner of Paytm.
Who is CEO of Paytm?
Vijay Shekhar Sharma is the current CEO of Paytm.
Is Paytm Chinese company?
PayTM is owned by an Indian company by the name of One97 Communications Ltd.
Conclusion
The capital investors in India have seen a significant rise in the last two years because of the pandemic. People are looking forward to growing their wealth through capital markets due to the layoff of jobs. Platforms such as Upstox, Groww, Zerodha and Paytm money has seen a subsequent increase in their user base.
Mutual Fund investments are considered as one of the best ways to increase your money in the long run and to beat the inflation rates. This can be a way through which you can achieve financial freedom. With the availability of a lot of mobile applications in the market investing in Mutual Funds has become easier when compared to the days prior.
But choosing the best platform to invest in Mutual funds has become hard as choosing from a wide range of options is a hard process. You can go through this article to choose from the best Mobile Applications available for you to start your Mutual Funds Investment journey.
Groww is a mobile application you can use if you are a beginner in Mutual Fund Investing. The platform provides an interactive and simple user interface. The application offers various resources such as blogs and learning videos that are related to mutual funds to help you in Mutual fund investing in case you are a beginner.
Through the Groww application, you can easily invest in mutual funds at a zero commission rate. The platform provides an easy-to-use interface where you can track all your investments, total returns, and annual returns under one dashboard. You can also create an account easily with a one-step KYC process.
Groww Mobile App
They also have a Mutual Fund SIP calculator this will let you calculate the return on your investments easily and you can even start investing in mutual funds through a Systematic Investment Plan (SIP) at a very low price of INR 100.
All your transactions through the platform will be secure as it uses 128-bit SSL encryption. The mobile application is available for both Android and IOS users.
Downloads – 10M+
Playstore Rating – 4.4
Download Size (Android) – 27mb
Paytm Money
Paytm Money Mutual Funds App is one of the best mobile applications in India for Mutual Fund investment. Through this platform, you can get access to various investment ideas from where you can choose according to your requirements.
There are no hidden charges for buying and selling of Mutual Funds through the Paytm Money Mutual Funds App as it is absolutely free of cost.
Paytm money Mobile app
You can open an account in Paytm Money in less than 30 minutes through a paperless KYC process. Opening an account is very simple and it easily makes your account investment-ready as soon as your account is opened and the verification process is completed.
You can track the performance and returns of your investments easily as it has a one-stop solution. You can start investing in Mutual Funds using Paytm Money Mutual Funds App through a Systematic Investment Plan (SIP) at a very low price of INR 100.
The app is available for both Android and IOS users.
Downloads – 5M+
Playstore Rating – 4.2
Download Size (Android) – 28mb
ETMONEY
ETMONEY is also considered to be one of the best platforms for Mutual Funds investments in India. It is a mobile application under Times Network. You can easily navigate using this platform and the application is very light.
ETMONEY provides insights about your investment from the application and this can provide a lot of information and improve your Mutual Funds investment process. This is considered as one of the best features provided by the platform.
ETMONEY Mobile App
The platform also offers personal finance strategies after taking into consideration your financial goals and your duties. The app also offers solutions for tax savings for free which will help you save up to INR 46,800.
Through this platform, you can also get access to various financial products such as insurance policies, direct mutual fund investments through SIP’s, Instant loans, etc. The app also lets you transfer money into the platform through various UPI payment apps such as Google Pay, PhonePe, Paytm, etc.
The Mutual Fund investments through the app are free of cost. The Application is available for both Android and IOS users.
Downloads – 5M+
Playstore Rating – 4.5
Download Size (Android) – 19mb
CashRich
CashRich was one of the earliest apps available for Mutual Fund investments in India. It is the first mobile application to offer a dynamic SIP investment option. This provides much higher returns than the regular SIP.
Opening an account is very easy as it is through a paperless KYC process and the platform lets you open an account in less than 30 minutes. The application provides personalized investment options after taking into consideration your financial obligations and goals.
Cashrich Mobile app
The account you open with CashRich comes as a free account for your entire life with no account opening charges and zero maintenance charges. There are no transaction charges as well.
They provide chat support which is active 24×7. The mobile application is available for both Android and IOS users.
Downloads – 100k+
Playstore Rating – 4.5
Download Size (Android) – 10mb
Scripbox
Scripbox is a mobile application which helps you invest in mutual funds. The platform helps you achieve your financial goals in your life by letting you invest in the best mutual funds available. It is one of the most trusted Finance based mobile application in India.
There is no lock in period for both equity mutual funds and debt mutual funds except for ELSS mutual funds. The platform provides a complete view on the growth of your mutual fund investments. They even provide periodic reviews of their mutual funds which will help you stay updated and analyze the best mutual fund available.
Scripbox Mobile App
Downloads – 1M+
Playstore Rating – 4.5
Download Size (Android) – 18mb
Coin by Zerodha
Zerodha Coin is a platform which is under the largest stockbroker of the country Zerodha. Zerodha coin is also the largest platform which lets you directly invest in Mutual Funds. The platform lets you invest online with zero commission directly from Asset Management companies.
You will have access to unlimited free investments in direct mutual funds.
Coin by Zerodha Mobile app
Downloads – 1M+
Playstore Rating – 4.5
Download Size (Android) – 9.5mb
Kuvera
Kuvera is an online platform which lets you invest in Mutual Funds. The platform runs under the company Arevuk Advisory Services which is a SEBI registered investment advisor.
You can invest in direct mutual funds through the app without any fees or commissions. The platform was introduced in the year 2016. It is a wealth management platform for individual investors.
Kuvera Mobile App
Downloads – 500k+
Playstore Rating – 4.7
Download Size (Android) – 32mb
FAQ
What is meant by mutual funds?
Mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
What are 3 Types of mutual funds?
There are four broad types of mutual funds: Equity (stocks), fixed-income (bonds), money market funds (short-term debt), or both stocks and bonds (balanced or hybrid funds).
What is the 3 day rule in stocks?
The ‘Three Day Rule’ tells investors and stock traders to wait a full three days before buying a stock that has been slammed due to negative news.
Conclusion
Through such mobile applications investment in Mutual funds has become an easier and hassle-free process. Most of the applications mentioned in this article have somewhat similar futures. You can choose any of the platforms according to your choice and start your investment journey.
