Zerodha Beware: Groww Mutual Fund Gets Green Light for its First NFO

Date : 08/09/2023
Read: 3 mins

What is Groww Mutual Fund and why is it challenging Zerodha? Read this article to discover its features, benefits and how you can participate in it.

Do you want to invest in a simple and transparent index fund that tracks the performance of the entire Indian stock market? If yes, then you might be interested in the first NFO from Groww Mutual Fund, a new player in the mutual fund industry. Groww Mutual Fund has received SEBI approval to launch its first index fund, Groww Nifty Total Markets Index Fund. In this article, we will tell you everything you need to know about this NFO.

Highlights:

Groww Mutual Fund launches first index fund
Groww expands with personal loans and UPI payments
Groww is online stockbroking and direct MF platform.

Also Read: How to use Investment Apps and start small

Investors should wait for more details about Groww Mutual Fund's NFO before making a decision about whether to invest or not. However, the fact that Groww is a well-established company with a good track record is a positive sign. While there is not much information available about Groww Mutual Fund's first NFO, the entry of new entrants into the mutual fund industry with new products is a positive development for investors.

About Groww

Groww, founded by ex-Flipkart employees in 2017, is an online stockbroking platform.
It rivals StockGro, ETMoney, Zerodha, etc. PhonePe also entered share trading last month.
Groww has been expanding its product range. It offers instant personal loans as an NBFC and UPI payments since July.
Groww incurred a loss of INR 239 Cr in FY22, down from a profit of INR 167.6 Cr in FY21. Operating revenue surged 11.8X YoY to INR 350.9 Cr in FY22.
Groww Mutual Fund, a new entrant in the mutual fund industry, has applied for its first NFO, an index fund.

New Developments in Mutual Fund Industry

Helios Capital Management, a PMS (portfolio management service) firm, has received final approval from the Securities and Exchange Board of India (SEBI) to launch a mutual fund (MF) house. The company had applied for a mutual fund licence with SEBI in February 2021 and was granted an in-principle nod last September.
Old Bridge Capital Management, another PMS firm, is also hopeful for final approval from SEBI to establish a mutual fund house.
Brokerage firms Emkay Global Financial Services and AngelOne have also received in-principle approvals from SEBI for mutual fund business.
SEBI is considering the applications for mutual fund licenses from three companies: Wizemarkets, Unifi and Alpha.
According to the AMFI, mutual fund folios and AUM hit record highs of over 15 crores and Rs 46.37 lakh crore respectively in July 2023, rising by 1.91% and 4.1% from the previous month.