Groww - Invest in Stocks and Mutual Funds with India's best Investing Platform

Investing legends like Warren Buffet are not made overnight. Do you know when he started investing? At the age of 11! At that age, we were probably worried about when we can get that new video game to play with our friends, money and future were not even in our radar.

Now, we could feel FOMO or realize that not everyone's the same, maybe you’re 21, 31, or even 41. The key is to understand the importance of investing and once you do, start investing as early as possible.

Since we are talking about starting early with your investments, let’s explain why it’s good for you.

• The power of compounding

Albert Einstein once called it the "8th Wonder of the World”. With the power of compounding, the interest you earn on your investments earns interest on itself and this amount is compounded regularly—helping you multiply your earnings.

• You have time on your side

Money can’t buy time, but time can earn you money and help in accumulating wealth for your future. One of the advantages of investing early is that you gradually become a financial expert, thanks to all the early, mundane mistakes. Where most people will make these mistakes and lose a fortune, you will have already learned these at a minimum cost early on. You will have learned the art of value investing and how to minimize your risk and losses.

•Develop a good habit

Investing regularly for the long term, say via SIP, is a disciplined way to attain your financial goal and making your money do the work for you every step of the way. While you do this, you will be developing a good spending habit early on (by using the method of ‘save first, spend later’) and build a wealthier future for yourself. It’s a long-term plan, and the clock is ticking away.

•You can give yourself a raise

Whenever you get a raise, treat your future self as well by giving a raise to your investments as well. As an early starter, you’ll be at an advantage as even a small increment is worth far more in the long run, especially when the standard/cost of living in India is getting higher every year. The more years you keep giving your investments a raise, the more relaxed you will be after retirement. (And, it’s never too early to plan for your retirement)


Groww

Groww

Investing in stocks and owning a piece of the top companies in India has been a dream for many. I  have been one of those dreamers just like you. But, as much as i wanted to invest, it was so complicated and hard process to follow, here comes Groww which is one of the best investing platform in india where you can invest in stocks, mutual funds and even gold.

Groww

Best investments in Groww

Stocks
Mutual funds
Gold
US stocks
Fixed deposits

These are the best ways of investing on groww

Share Market 

Before we jump into the investment first let's get a brief introduction of share market
Share market is the aggregation of buyers and sellers of stocks  share market is also know as stock market and equity market.

Stocks

Stock is the part of a company that holds the ownership in shares, the bigger the numbers of stocks you hold the higher your ownership in that company.

Mutual Funds 

Mutual funds are professionally managed investments which pools money from many investors, mutual funds are usually managed by institutions or corporations these corporations collects money and invest in different - different companies stocks which comes with low risks compare to the share market. Investing in mutual funds is the trending investments because it comes with higher returns.

Selecting Mutual Funds

A portfolio is a collection of mutual funds put together for a specific investment goal.
Let me take an example of a mutual fund portfolio.

Before you start investing, it is essential to be very clear about what your goals are.

Goals can be as simple as:

Accumulate Rs 1 crore
Save for a world tour
Quit my job in 10 years

Invest in mutual funds portfolios for your specific goals. They have many advantages:

Low minimum amounts
Diversification
Paperless investing

Withdraw anytime (except tax saving mutual funds)

Homework: Visit Groww and check out the various mutual funds available. Read the details. Also, jot down your thoughts on why any two mutual funds are different.

Gold

You can even invest in digital gold by grow, you have three ways you can invest in gold on Groww:

+ Digital gold
+ Gold mutual funds: SBI Gold Fund, ICICI Pru Regular Gold Savings Fund, etc.
+ Gold ETFs: Nippon India ETF Gold BeES, Axis Gold ETF 

Been hearing a lot about investing in ETFs? Let's understand it together.

ETF

Let’s start with what an ETF is.

ETFs or Exchange Traded Funds are like mutual funds that are traded on the exchange like stocks.

With an ETF, you can buy and sell a basket of stocks without having to individually select different stocks for trading. Which is why it has evolved as one of the most popular forms of passive investing in India.

Unlike the NAV in mutual funds (where it is calculated at the end of the trading day), the price of each unit of the ETF is determined by the price movement of the indices plus demand and supply in respective ETFs.

For example: Nifty BeES (India’s first ETF) tracks the movement of the Nifty 50 Index. That means the fund manager buys and sells stocks from Nifty 50 and hence, the returns are similar to those of the index.

What makes ETF so popular amongst investors?

#1
Move with the index

You can buy and sell ETFs throughout the trading day like stocks to benefit from the index price movements.

#2
Diversify with a basket of shares

Every ETF comes with a bunch of stocks from different companies and sectors so you can diversify your stocks portfolio in one go. ETFs also allow buying and selling of fractional shares that helps in diversifying further.

#3
Lower expense ratio

The expense ratio of an ETF is usually lower than most regular mutual funds (especially actively managed mutual funds).

#4
Buy and sell anytime

Since ETFs are traded on the exchange like stocks, you can also buy and sell ETFs anytime, just like stocks.

Types of ETFs you’ll find on Groww:

Equity ETF

These are funds that invest in shares and other equity of various companies. They track the movement of stocks from particular sectors and/or industries.

Gold ETF

Gold ETFs invest in Gold Bullions, which let one own real gold in a non-physical form. It also limits issues with owning physical gold such as storage and security, while adding gold to their portfolio.

Debt ETF

Those dealing with fixed income securities such as bonds and debentures are called debt ETFs.


Groww

Complete your investment account on Groww in just 2 mins

To start your investment journey, you need to first complete your KYC with Groww. You can open your account and start investing in less than a few minutes on Groww
Groww need your KYC documents so that you can start investing.

KYC

What is KYC?

Before you invest they need to verify specific details about you - this includes your identity, your address, and your bank account details. This verification process is called Know Your Customer (KYC).

Why do they need KYC?

SEBI has made KYC mandatory to invest in stocks and mutual funds in India.

What is required ?

PAN card (Photo)

Address Proof (Back & Front)

5-second video of you holding your PAN

Signature

It's 100% paperless. All they need is a soft copy (photos) of your documents. Everything is done through the Groww app.
That's it! you will be ready to invest.

Groww started to make investing accessible and transparent in India. All products at your fingertips. With complete transparency.

+ Stocks
+ Mutual Funds
+ Gold
+ US Stocks
+ Everything

Here is a quick update on what is available on Groww.

What is  available on Groww

+ Open demat account using app & web
+ Market/limit buy/sell stocks on BSE or NSE
+ Fundamental stock details
+ Simplified screener
+ Watchlist to monitor your stocks
+ Real-time dashboard to monitor your holdings

Investment Rules / how to invest

A simple google search for ‘best investment ideas’ will give you thousands, nay, millions of results. But, can you trust them all? Of course not!

Today, we have compiled 3 thumb rules of investing for you. These are presented as rules usually, but we want to tell you that you can tweak this rule as per your requirements and expectations. As an investor on Groww, we believe that no one else can make a financial decision for you better than yourself.

You know yourself best and only you can do justice to your hard-earned money. So, let’s get to the learning part now.

Monthly SIPs starting at as low as Rs.500. Explore investments on Groww → 

1: 100 minus age rule 

A beginner’s guide to asset allocation, the 100 minus age rule is one of the simplest rules to help you decide on the percentage of equity and debt allocation in your investment portfolio.

Why does it work?

Equity (stocks, mutual funds, etc.) is comparatively high-risk than debt (bonds, gilt funds, etc.). However, equity in the past has given higher returns in the long term than debt.

The younger you are, the higher is your risk-taking capacity as you can stay invested in the market for a longer time and average out even through occasional volatile markets.

As you grow older, there is a higher probability that you would need the money sooner. In this case, a majority of your investments can be invested in debt so that you keep growing your money without the short-term risk associated with equity.

Note: Real risk appetite may vary from person to person.

2: Rule of 72

The rule of 72 is a simple way to determine how many years it will take for you to double your investment at the given rate of returns.

3: 50-30-20 budget rule

How to maximize your savings?

Download statement: Check your last 3 months’ bank statement to evaluate your expenses.

Understand behavior: Get to know yourself and your spending habits better and budget accordingly.

Be consciously frugal: Avoid expenses that are tangible (which are under your control) and your “fun” spends.

Evaluate big expenses: If your house rent is eating up a huge percentage of your income, consider moving to a lower-cost house.

Repay on time: Ensure that your credit card/loan repayments are done on time to avoid paying interest.

Get insured for the future: Explore insurance plans to save you from heavy expenses in the future.

Learn about investment options: Keep yourself informed and educated about investment avenues to ensure that your savings keep growing and don’t sit idle. Consider investing 20% of your income and diversify for the long term.

Get ready to own stocks in your favourite companies. Join Groww to experience stocks like never before with everything you need in one place.

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