How to Invest in Mutual Funds Using Groww App – Step-by-Step Guide for Beginners (2025) | HindiTechGuide

If you’ve been saving money in your bank account and wondering how to make it grow faster, mutual funds can be a great option. In this blog, I’ll show you exactly how to invest in mutual funds using the Groww app, how to start a Systematic Investment Plan (SIP), and how to calculate your expected returns — all in a simple, step-by-step manner.

Let’s get started.

What Is the Groww App?

The Groww app is a trusted investment platform that allows you to invest in mutual funds, stocks, ETFs, and more, directly from your mobile phone. It’s popular in India because it’s easy to use, 100% digital, and supports small investments — even as low as ₹100.

If you already have the app installed, log in to your account. If you’re a new user, you can find a tutorial on how to register and log in to Groww on YouTube or Groww’s help section.

Step 1: Open the Groww App

Once you open the app, the home screen shows several options such as Stocks, Mutual Funds, and Gold.
Tap on “Mutual Funds” — that’s where your investment journey begins.

You’ll see different sections like Dashboard, Explore, and Orders.

Dashboard shows your total portfolio — all the mutual funds you’ve invested in.
Explore is where you can discover new funds and check their performance.

Step 2: Explore Popular Mutual Funds

In the “Explore” section, Groww highlights Popular Mutual Funds — funds that many investors are currently investing in and which have performed well recently.

You can also browse Collections such as:

High Return Funds (higher risk, but higher potential returns)
Tax Saving Funds (ELSS) – helps reduce your income tax
Large Cap, Mid Cap, Small Cap Funds – choose based on your risk appetite

For instance, high-return funds can show up to 65% return over three years, while moderate funds may give around 40–50%.

You can start investing in most funds with as little as ₹500, though some require a minimum of ₹1,000.

Step 3: Choose a Mutual Fund to Invest In

Let’s take an example: Nippon India Small Cap Fund – Direct Growth Plan.
This is a well-known fund that has shown strong returns in recent years.

Here’s what the Groww app displays for this fund:

3-Year Average Return: 14.45%
1-Month Return: 5.41%
6-Month Return: 5.81%
1-Year Return: 22%

Remember: Past performance is not guaranteed in the future — mutual fund returns depend on market conditions.

You’ll also see:

NAV (Net Asset Value): ₹107.40 (the price per unit)
Fund Rating: 4 stars
Minimum SIP Amount: ₹100
Fund Size: ₹24,490 crore

This shows it’s a large, well-diversified fund managed by experienced professionals.

Step 4: Check Fund Details Before Investing

Before you invest, review the fund’s details on Groww:

Holdings: The companies where the fund invests your money.
For example, Nippon Small Cap Fund invests in:
- Tube Investments of India – 3.22%
- HDFC Bank – 1.73%
- KPIT Technologies – 1.6%
  It invests across over 160 companies, which helps reduce risk.
Category Average Return: 12.8%
This fund’s 22% annual return is above average, showing strong performance.
Expense Ratio: 1% (If it’s below 1%, that’s excellent)
Exit Load: 1% if you withdraw within one month; after that, no charge.
Tax Details:
- If you sell before 1 year, 15% short-term capital gains tax applies.
- If you sell after 1 year, 10% tax applies on profits above ₹1 lakh.

All this information is available under the fund’s “Details” tab in the app.

Step 5: Use the Return Calculator

The Return Calculator on Groww helps you estimate how much you could earn.

For example:

If you invest ₹5,000 every month for 1 year, you’ll invest ₹60,000 total and may get ₹65,510 (a 9.18% return).
In 3 years, your ₹1.8 lakh investment can grow to around ₹2.07 lakh.
In 5 years, it can reach approximately ₹2.9 lakh.

You can also check returns for one-time (lump sum) investments — say ₹20,000 invested once could grow to around ₹24,000 in a year depending on market conditions.

Step 6: How to Start SIP or Lump Sum Investment

Mutual funds allow two types of investments:

One-Time (Lump Sum) Investment:
Invest a larger amount (minimum ₹5,000) in one go.
SIP (Systematic Investment Plan):
Invest a fixed small amount (like ₹100 or ₹500) every month automatically.

For SIP:

Select “Start SIP”
Choose your SIP date (e.g., 10th of every month)
Confirm your linked bank account — the same one used in Groww.
Authorize payment via UPI or net banking.

Once confirmed, your SIP will automatically deduct money every month on your selected date.

Step 7: Payment Process

After confirming the SIP or lump sum:

Groww will show an OTP (One Time Password) verification screen.
Approve the payment via Google Pay, PhonePe, or UPI app.
Once done, you’ll see “Order in Progress.”

This means Groww has received your payment and is processing your investment.

It may take 1–2 business days for your mutual fund units to reflect in your portfolio. Once confirmed, you’ll see the fund listed under your Dashboard.

Step 8: Tracking Your Investments

You can check your mutual fund performance anytime under “Dashboard” → “Mutual Funds.”

It will show:

Total invested amount
Current value
Profit or loss percentage

You can stop your SIP anytime, or even withdraw partially if you need funds — since these are open-ended funds, there’s no lock-in (except for tax-saving ELSS funds).

Why Groww Is a Good Choice for Mutual Fund Investment

Here’s why millions of investors use Groww:

Easy to use and beginner-friendly interface
Invest from ₹100 onwards
No hidden charges — transparent fee structure
Quick SIP setup with automatic monthly deductions
Wide variety of mutual funds (equity, debt, hybrid, ELSS, etc.)
Real-time portfolio tracking

Pro Tips for Beginners

Start Small: Even ₹100 per month SIP builds the habit of investing.
Stay Consistent: Don’t stop your SIP during market falls — that’s when you buy at low prices.
Diversify: Invest in a mix of small-cap, mid-cap, and large-cap funds.
Review Every 6 Months: Track performance and switch only if necessary.
Avoid Short-Term Withdrawals: Mutual funds work best for long-term goals like 3–5 years or more.

Conclusion

Investing in mutual funds through the Groww app is simple, secure, and smart — perfect for beginners who want to grow their savings faster than a traditional bank account.

With just ₹100 and a few minutes, you can start your Systematic Investment Plan (SIP) today and build wealth for your future.

If you found this guide helpful, don’t forget to share it with friends who want to learn about mutual funds investment in India, and keep visiting for more easy financial guides.

Start small, stay consistent, and watch your money grow — one SIP at a time.

Read Also Thease Articles -