How to Invest in Mutual Fund via Groww India – A Complete Step by Step Guide

Many people in India want to grow their money. But they feel scared of the stock market. They think investing is for rich people or experts. That is not true. You can start with very small money. You do not need any special degree. You just need a mobile phone and a demat account.

One easy way to start is through mutual funds. And one of the most simple apps to do this is Groww. In this article, I will show you how to invest in mutual fund via Groww India. I will also tell you how to invest in mutual funds online without any trouble.

What is a Mutual Fund ?

A mutual fund is a basket. In this basket, many people put their money together. Then a fund manager takes this total money and buys things like company shares, government bonds, gold, or other assets. When these things grow in value, your money also grows.

You do not have to pick which share to buy. The fund manager does that work for you. That is why mutual funds are good for new investors.

Read More: What Are the Safest Investments in 2026?

Why Use Groww for Mutual Fund Investment?

Groww is a made in India app. It started in Bengaluru. Today, lakhs of people use Groww to buy mutual funds. Here is why Groww is liked by common Indian users.

First, Groww has a very clean look. You do not get lost in too many buttons or numbers. Second, you can start a mutual fund with just 500 rupees. Third, Groww shows you direct mutual funds. Direct funds have less cost. That means more return in your pocket.

Fourth, Groww is registered with SEBI. That means your money is safe. Fifth, you can finish your KYC fully online. You do not need to visit any office or sign any paper.

How to Invest in Mutual Fund via Groww India – Step by Step

Follow these steps carefully. Do not skip any step. Even if you are a first time user, you will be able to do this.

Step 1 – Download Groww App

Open Google Play Store or Apple App Store. Search for Groww – Invest in Stocks & MF. The app icon is green and white. Download and install it.

Step 2 – Sign Up Using Your Mobile Number

Open the app. Click on Sign Up. Enter your Indian mobile number. You will get an OTP. Enter that OTP. Your account is created.

Step 3 – Complete Your KYC

This is a very important step. Without KYC, you cannot buy any mutual fund. KYC means Know Your Customer. It is a rule by SEBI.

In Groww, go to Profile. Click on Complete KYC. You will need your PAN card. You will also need your Aadhaar card. The app will ask you to take a live photo of your face. Then it will ask you to upload a clear photo of your PAN card. After that, it will verify your details. This takes 5 to 10 minutes usually.

Step 4 – Add Money to Your Groww Account

Once KYC is done, you need to add money. Go to the wallet section. Click on Add Money. Enter the amount you want. You can add as little as 100 rupees. Use UPI, net banking, or debit card. Your money will show in your Groww wallet in a few seconds.

Step 5 – Search for a Mutual Fund

Go to the Mutual Fund section on the home page. You will see a search bar. Type the name of a fund. If you do not know any fund name, you can search by category. For example, small cap fund, large cap fund, or balanced fund.

Groww also shows you a list of top funds. You can see their past returns. But remember, past returns do not guarantee future returns.

Step 6 – Start a SIP or One Time Investment

Groww gives you two choices.

First is SIP – Systematic Investment Plan. In SIP, you put a fixed amount every month on a fixed date. For example, 1000 rupees every 5th of the month. SIP is good for people who get a monthly salary.

Second is lump sum. In lump sum, you put all your money at once. For example, 10,000 rupees today. Lump sum is good when you have extra money like Diwali bonus or tax refund.

Choose what works for you. Then click on Invest. Enter the amount. Confirm. Your investment is done.

How to Invest in Mutual Funds Online – General Method

You do not have to use only Groww. The basic method to invest in mutual funds online is same for every app. Let me tell you that method.

First, you need a PAN card and Aadhaar card. Second, you need a bank account that is linked to your mobile number. Third, you need to complete eKYC. Fourth, you pick a mutual fund. Fifth, you decide how much to invest. Sixth, you pay online using UPI or net banking. Seventh, you get units in your demat account.

That is all. There is no hidden step. No agent will call you. No one will ask for a paper signature. Everything is online.

Many people think online mutual fund investment is risky. But if you use a SEBI registered app, your money is safe. The apps do not keep your money. Your money goes directly to the mutual fund company. The app is just a middleman.

Top 5 Mutual Fund App in India – Which One is Best for You

I have used many apps myself. I also talked to other users. Based on that, here are the top 5 mutual fund app in India that you can trust. I have kept only those apps that are simple, safe, and good for beginners.

1. Groww

Best for new investors. Very simple interface. You can buy stocks, mutual funds, and even gold. KYC is fully digital. You can start with 500 rupees. The app does not push you to buy things you do not need.

2. Coin by Zerodha

Best for people who already use Zerodha for stocks. Coin is built inside Zerodha. It only offers direct mutual funds. That is good. But the interface is a little harder than Groww. Not for total beginners.

3. Paytm Money

Best for people who already use Paytm for mobile recharge or bill payment. Paytm Money shows you many mutual fund options. It also has a good search filter. But sometimes the app feels heavy on old phones.

4. ET Money

Best for goal based investing. You tell ET Money that you want to save for a holiday or for your child school fees. Then it suggests funds based on that goal. It also gives you a free credit score check. That is a nice extra.

5. INDmoney

Best for people who want to see everything in one place. INDmoney shows you your bank balance, credit card bills, mutual funds, stocks, and even US stocks. But the app has too many features. Some users feel confused.

Common Mistakes People Make and How to Avoid Them

I see many new investors making these mistakes. Please read this section carefully.

Mistake 1 – Stopping SIP When Market Goes Down

When market goes down, your fund value goes down. That is normal. Many people get scared and stop their SIP. That is a mistake. When market is down, you get more units for the same price. That helps you later when market goes up.

Mistake 2 – Chasing Past Returns

Many apps show one year return of 40 percent. People see that and put all their money in that fund. Then next year, that fund gives only 5 percent. Do not chase past returns. Look at three year and five year returns. Look at how much risk the fund takes.

Mistake 3 – Investing Without Goal

Some people put money in mutual funds just because a friend told them. That is not good. Ask yourself – why am I investing? For retirement? For buying a house? For a trip? Every goal needs a different kind of fund.

Mistake 4 – Checking Your Portfolio Every Day

Mutual funds are not made for daily checking. They are made for long term. If you check every day, you will feel tension. Check once a month or once in three months.

How to Pick the Right Mutual Fund on Groww?

Groww has many funds. That can confuse a new user. Here is a simple way to pick.

• If you want safe and steady returns, look for large cap funds. These funds buy shares of big companies like Reliance, Infosys, HDFC Bank.
• If you want higher returns but can take some risk, look for mid cap or small cap funds.
• If you do not want to take any risk at all, look for debt funds or liquid funds. These give returns a little higher than a savings bank account.

For a beginner, I suggest a balanced fund. Balanced fund puts some money in shares and some money in bonds. That gives you growth with less worry.

You May Also Read: Best Tax Saving Investment Options for Traders

How Much Money Should You Start With?

You do not need a lot of money. You can start a SIP with just 500 rupees per month. That is less than one dinner outside. After three months, if you feel comfortable, increase to 1000 rupees. Then slowly keep increasing.

Do not put all your savings in mutual funds on day one. Keep six months of emergency money in your bank or in a fixed deposit. Then invest the rest.

Is Groww Safe for Mutual Fund Investment?

Yes. Groww is a SEBI registered stock broker. That is the highest authority for financial markets in India. Your units are kept in your demat account with a central depository. That means even if Groww shuts down one day, your units will move to another broker. Your money does not stay with Groww. It goes to the fund house.

Also, Groww is a unicorn startup. Many big investors have put money in Groww. That gives extra trust.

Tax on Mutual Fund Investment in India – Simple Words

When you make profit from mutual funds, you may have to pay some tax. Do not worry. It is very simple.

• If you sell your mutual fund units before one year, it is called short term. The tax depends on the type of fund.
• If you sell after one year, it is called long term. Most people hold for long term. For equity funds, if your profit in one year is more than one lakh rupees, you pay 10 percent tax on the extra amount.
• For debt funds, the tax rules are different. But as a beginner, if you start with equity funds, keep this one lakh limit in mind.

The best part is – Groww gives you a tax report every year. You can download it and give it to your CA. Or you can file your own ITR using that report.

Final Words 

You have now learned how to invest in mutual fund via Groww India. You also learned how to invest in mutual funds online in general. And you saw the top 5 mutual fund app in India.

Do not try to become perfect before starting. Download Groww today. Complete your KYC. Put 500 rupees in a balanced fund. Set a monthly SIP. Then forget it. Let your money work while you sleep.

After six months, come back and check. You will be happy you started.

Investing is not about being smart. It is about being regular. A person who puts 1000 rupees every month for ten years will do better than a person who tries to time the market. Trust the process. Start today

FAQs

Can I invest without PAN card?

No. SEBI rules say you must have a PAN card for mutual fund investment. If you do not have PAN, first apply for one. It takes 7 to 10 days.

Can I withdraw my money anytime?

Yes. You can sell your mutual fund units any day. The money comes to your bank account in 2 to 3 days. But remember, if you sell early, you may lose some money if the market is down.

What is the minimum amount to start in Groww?

500 rupees for SIP. Some funds even allow 100 rupees.

Is my bank account safe with Groww?

Groww uses high security. Many banks and UPI apps also use the same security. Lakhs of people use Groww daily. No major security issue has been reported.

Which is better – Groww or direct fund house website?

Direct fund house website also works. But then you need a different login for each fund house. With Groww, you can see all your mutual funds from different companies in one single app. That is easier.