Which is better Zerodha or Groww for Mutual Funds?
- Asked By
- Updated On:23-Jun-2021
- Replies:1
Short Answer
Zerodha as well as Groww, both allow investors to invest in Mutual funds. Groww does not charge any Account opening fees or Annual maintenance Charges but Zerodha charges Rs 200 for Account opening and Rs 300 for AMC. This makes Groww a cheaper and better option when it comes to investing in mutual funds.
Detailed Answer
What are Mutual Funds?
In simple words, a Mutual Fund is a Fund that is formed by small contributions of retail individuals. It is managed by a professional fund manager who buys and sells securities based on the objective of the Fund. Mutual Funds are issued by individual AMC (Asset Management companies) who appoint a Stockbroker or any Financial platform to act as a middleman and to ultimately sell their product to the common Investor.
There are many Stockbrokers who allow their users to invest in Mutual Funds, here we are going to discuss 2 players, who are-
- Zerodha
- Groww
Zerodha
Zerodha is India’s First Discount Broker and has become the largest Stock Broker in the country. It was started in 2010 and currently, has almost 4 Million active clients which account for more than 19.5% of the total active client base of the NSE (National Stock Exchange).
Groww
Groww is new to the Stockbroking community as it started business in 2016 where it was just a Mutual Fund investment platform but slowly it tapped into the Stocks section in 2020. Groww is one of the fastest-growing Stock Brokers in India. It has acquired more than 6.5 Lakh active clients till date which sums up to approximately 3.68% of the total market share in the NSE.
Zerodha vs. Groww - Comparison
Pricing-
Grow charges Nothing for account opening or any AMC (Annual Maintenance Charge). This is one of the main USPs of Groww which makes it very favorable for Mutual Fund and Stock Investors, as one can open a Demat & Trading account as well as a Mutual Fund investing account for free with Groww.
On the other hand, Zerodha charges 200 for Account opening. This charge includes the Trading & Demat account as well as the access to invest in Mutual Funds. Apart from this Zerodha also charges Rs 300 as an Annual Maintenance Charge that has to be paid every year.
Apart from this, both brokers do not charge any extra fees or commissions to buy or to Sell any Mutual Funds.
Hence by this, it seems that Groww is a better option as it is free to open an Account to invest in Mutual Funds.
Features-
In Groww all the features such as Stocks & Mutual Fund investments are integrated into one app, whereas Zerodha has a separate app known as Coin for Mutual Fund Investing. This gives a new experience to track your investments in Stocks and Mutual Funds separately. Apart from Mutual Funds, Zerodha gives offers more features for the price such as investment opportunities in Bonds, Commodities & Derivatives which Groww lacks.
This in turn gives Zerodha a slight edge over Groww in terms of features.
Conclusion-
Both Groww, as well as Zerodha, include the Demat account in the account opening process. One cannot simply open a Mutual Fund investment account with any of them. Groww charges “0” for Account opening and “0” for AMC whereas Zerodha charges 200 for account opening and 300 every year for AMC. Looking at these it is clear that Groww is a better option for Mutual Funds as there are no extra charges involved as compared to Zerodha.
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Discussion (0)
Zerodha and Groww are both good players in the Discount Broking space but both have some differences. Zerodha has the largest client base and is the most trusted Broker in India whereas Groww is one of the fastest-growing Discount brokers. Both offer different features to their clients which is discussed in detail below.
Fixed Deposit (FD) are saving tools offered by banks to deposit lump sum amount for a fixed period of time on a higher interest rate than saving accounts. Mutual funds are investment products which pool money from numerous small investors to create a fund.
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
There are plenty of direct mutual funds investment platforms such as Groww, Coin by Zerodha, Kuvera, and others. However, choosing the best would entirely depend upon your requirement and preference.
Yes, Zerodha is much better than Paytm money, thanks to the discrete offerings that Zerodha brings to the table. Zerodha has been in the stock brokering business for a decade whereas Paytm money was founded in 2017. The experience, knowledge, tools, and trading options provided by Zerodha are quite prominent and useful when compared to Paytm money.
Equity and mutual funds are perfect if you want to invest in companies while seeing your money grow in a short period. Moreover, the chances of compounding your investments are higher. But the risk associated is equally greater considering the growth of companies and their performance in offering returns. But then keeping money in the bank is the safest way to keep your earnings. But then, due to inflation and low returns on interest, that value of the money kept might be cut down drastically.
Interactive Brokers & Zeodha are two Brokers from the Discount Broking community but both are quite different from one another in terms of Features and Working. One is an Indian discount Stock Broker whereas the other is a U.S based Discount broker that has its branches in many countries. Let's look at them in depth below.
You wish to know if Paytm Money is better that Zerodha or it's the other way round. Zerodha being a leading discount broker in India has been there for overe a decade now. While Paytm Money already established in mutual fund investment arena, but a fairly new entrant in stock broking industry. So, let's compare the features and discuss few details on each of them.
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
Investors looking to invest in mutual funds without a Demat account can invest through financial institutions, independent financial advisors, AMC, and online portals.