In the sea of financial technology startups, Groww has emerged as one of India’s leading investment platforms. But how does it fare for the NRI community? Let’s explore.
In this article...
Overview: What is Groww?
Founded in 2016 by former Flipkart employees, Groww started as a platform simplifying mutual fund investments and later expanded into stocks, fixed deposits, gold, and US stocks.
The platform’s simplicity and transparent fee structure have attracted millions of users, but is it the right choice for NRIs?
Groww for NRIs – The Basics
Groww permits NRIs to invest in mutual funds but, as of my last update in 2022, the platform didn’t support NRI stock trading.
NRIs can, however, explore mutual fund investments after opening an NRO or NRE account.
Groww Unique Features & Benefits
- Simplified User Interface:
Groww’s application interface is lauded for its simplicity and ease of navigation, making it friendly for investment novices. - Direct Mutual Funds:
Groww allows investors to buy direct mutual funds, which means lower expense ratios and potentially higher returns over time. - Diverse Investment Options:
Apart from Indian stocks and mutual funds, Groww has diversified to offer US stocks, allowing investors to tap into global giants like Apple, Amazon, and Google. - Knowledge Resources:
Groww’s Learning Platform offers a range of articles and videos covering the basics of investing, market news, and in-depth stock analysis. - Transparent Pricing:
Groww boasts a transparent fee structure with zero commission on mutual fund investments and competitive rates for stock trading.
Is Groww Better for NRIs?
- Mutual Fund Investments:
As mentioned, NRIs can invest in mutual funds through Groww using their NRE or NRO accounts. The platform offers a wide array of funds, from equity to debt, suiting diverse investment needs. - Stock Trading Limitations:
For stock trading, NRIs might need to look elsewhere due to the current constraints on Groww. This is where platforms like Angel One, Zerodha, or ICICI Direct might come into the picture. - Tax Implications:
As with any investment, NRIs need to be aware of tax implications both in India and their country of residence. While the Groww platform offers clarity on Indian tax deductions at source, NRIs would be wise to consult a tax advisor for comprehensive guidance.
How Does Groww Compare to Other Platforms?
Let’s take a deeper look into how Groww compares with other stock trading apps for NRIs.
User Interface and Experience:
Groww: Acclaimed for its intuitive design and easy navigation, the Groww app is designed keeping both novice and seasoned investors in mind. The mutual fund selection, investment tracking, and even redemptions are streamlined to ensure a hassle-free user experience.
Angel One: Angel One’s platform offers an extensive range of tools and analytics, which might appear slightly overwhelming for beginners. However, for the tech-savvy and seasoned investors, this vastness is a boon.
Zerodha: Known for its Kite platform, Zerodha provides a robust trading experience with charts, analytics, and other tools. While the interface is clean, there’s a slight learning curve for beginners.
Products and Services:
Groww: Initially launched as a mutual fund platform, Groww expanded its horizons to stocks, US stocks, and fixed deposits. It’s a holistic platform for investors keen on diversification but falls short for NRIs wanting to trade stocks.
Angel One: Angel One offers a broad spectrum, from stocks, commodities to mutual funds. Their recent technological advancements and integration with third-party tools make it a strong competitor in the landscape.
Zerodha: As one of India’s largest brokers, Zerodha offers a wide array of products. Their Coin platform for mutual funds has also gained traction, allowing users to invest in direct mutual funds.
Pricing and Charges:
Groww: The platform shines with its zero-commission approach for mutual funds. For stock trading, they have competitive pricing, but this aspect is moot for NRIs as stock trading isn’t supported.
Angel One: Charges vary depending on the service availed, but Angel One is known for its competitive brokerage rates. Their detailed charge list provides a comprehensive view.
Zerodha: Zerodha introduced the flat fee model in India, charging a maximum of ₹20 for a trade. This structure has been a game-changer in the broking industry.
Customer Service:
Groww: While user reviews often praise the app’s interface, some users have highlighted delays in customer service response. However, the platform offers an extensive FAQ section which can address common queries.
Angel One: With a longer history in the broking world, Angel One has set up a robust customer service mechanism. Users can reach out through multiple channels, including phone, email, and chat.
Zerodha: Customer service is a mixed bag. While they have an extensive knowledge base and ticketing system, some users have reported delays, especially during high-market volatility.
However, when stacked against giants like Angel One and Zerodha, the platform’s limitations for NRIs, especially in stock trading, become apparent.
It would be wise for NRIs to consider a combination of platforms, using Groww for mutual funds and platforms like Angel One or Zerodha for a more extensive trading experience.
Conclusion
Groww has undeniably revolutionized the investment landscape in India, especially for millennials.
For NRIs, while it’s a fantastic platform for mutual fund investments, those keen on stock trading might need to explore other options.
As always, potential investors should do their due diligence and perhaps consider a blend of platforms to meet all their investment needs.
FAQs: Groww Review – Better Stock Trading App for NRIs?
Is Groww suitable for NRIs for stock trading?
No, as of my last update in 2022, Groww does not allow NRIs to trade in stocks. However, they can invest in mutual funds on the platform.
How does Groww’s zero-commission approach for mutual funds work?
Groww offers direct mutual funds, which means they don’t charge any commission from the investors. Instead, they earn from the fund houses, which give them a commission for distributing the funds.
Can I invest in US stocks via Groww?
Yes, Groww introduced a feature allowing Indian residents to invest in US stocks. However, NRIs would need to check the platform’s policy regarding their specific residential status.
How does Groww’s pricing compare to Zerodha and Angel One for stock trading?
Groww offers competitive pricing for stock trading for resident Indians. However, since NRIs can’t trade stocks on Groww, they might find Zerodha and Angel One more suitable in terms of pricing and features.
Are there any hidden charges on Groww?
Groww prides itself on transparency. All charges related to different services are listed on their website. Always make sure to read the terms and conditions before making any transactions.
How does the user experience on Groww compare to other platforms?
Groww’s interface is known for its simplicity and user-friendly design. Platforms like Zerodha and Angel One, while feature-rich, may have a steeper learning curve for beginners.
What are the options for mutual fund investments on Groww for NRIs?
NRIs can invest in a variety of mutual funds on Groww, ranging from equity, debt, hybrid, and others. The process is simple, with KYC being a primary requirement.
Which platform is more reliable in terms of technology and downtimes – Groww, Zerodha, or Angel One?
All three platforms invest heavily in technology. However, during times of extreme market volatility, there have been instances of downtime reported across platforms. It’s always good to check recent user reviews for the latest feedback.
Does Groww offer any educational resources for new investors?
Yes, Groww offers an extensive blog section and videos on its platform to educate new investors about the financial market and investment strategies.
How does Groww handle customer service issues?
Groww has a dedicated customer service team that can be reached via email and in-app chat. While most queries are resolved promptly, some users have reported delays during peak times.
