Groww for Investing in Stocks: Stock investments are one of the most prevalent avenues of growing wealth in today’s modern world. Every country has a governing body that confirms that the share transactions are free of fraud and smooth. In India, the Securities and Exchanges Board of India has defined a process of stock transactions to ensure maximum protection to all investors. One can get the best share market investing experience through Groww. One can open a trading account in Groww with the help of an e-sign using an Aadhaar card. The platform offers stocks investing along with Gold and Mutual Funds. Readout below to know what to consider before investing in stocks, how to open an account, buy and sell stocks on Groww, and more.
Things To Consider Before Making Investment in Stocks
- Understand the Profile of Investor: Every investor has their own rules and terms. Hence, one must confirm to invest based on the stakeholder profile. Risk tolerance, financial goals, and investment horizon are critical factors that identify the investor profile. One should determine how much instability one can handle without making wrong decisions.
- Explore The Company: Stock investment is like a marathon in which one should invest if it seems to undergo a long journey and produce good returns. By looking at the financials of a company, one can acknowledge if it can endure any economic trouble in the future.
- Track Investments Frequently: Investors should keep track of their investments to identify opportunities to sell and balance the portfolio again to gain profit. By selling the non-performing shares before they go down, one can rebalance the situation.
What are the Requirements for Stocks Investment?
- PAN Account: To invest in the share market, it is essential that an individual has a PAN Card. Apart from the PAN Card, one needs other documents like the Aadhaar Card, proof of address, income proof, and photographs to begin investing in the share market.
- Trading Account: One needs to have a trading account with a stockbroker to start making an investment in stocks. The stockbrokers register with stock exchanges. Most of the upright-quality stocks are accessible on both BSE and NSE main exchanges.
- Demat Account: This account holds the stocks with the consumer’s name. One can open a Demat account with any depository applicant. Many banks offer the Demat account services.
- Limited Bank Account: A person investing in stocks will need a bank account linked to the trading account. It is because stock investment leads to buying and selling the shares over time. So, a bank account linked to a trading account will ensure the flow of money in and out of the linked account flawlessly.
Stocks Investment Through Groww
Established in 2016, Groww has more than two million monthly active users in today’s time. The investment options under stocks and mutual funds are clearly mentioned on the company website. An investor can view all the necessary information about the statistics of the company such as shareholding patterns, financial performance, peer comparisons, and more.
- One can use smart filters like top gainers and do an analysis of the stock to make a wise decision before investing in any stock.
- The information on mutual funds involves the fund details, performance graphs for different periods, overview, a returns calculator, historical returns, and peers comparison.
- One can find information like sector allocation graph, holding analysis, list of pros and cons on the website. The process of investing in mutual funds is simple and the user is presented with different options for the investment duration and flexibility in the amount invested.
What Forms of Orders Are Accessible on Groww?
The company supports two types of orders:
- Limit Order: It is an order to buy/sell a share at a certain price or a less amount to buy and more to sell orders.
- Market Order: It is an order to buy and sell a stock immediately. The execution price is exactly or near the current bid for sell orders and asks price for buy orders.
The pre-market session is from 9 AM to 9:15 AM. Normal trading hours start from 9:15 AM and continue till 3:30 PM. The post-market session is from 3:40 PM to 4:00 PM.
How to Create Demat Account on Groww?
- The first step is to login to the Groww app, click on the ‘Stocks’ tab, and then hit on complete setup.
- Click on the option ‘Open Stocks Account’ to continue. There are zero charges to open an account on Groww. Click on the option ‘See all charges’ for other charges. After reading all the charges, hit on the agree tab to pay applicable charges.
- After ticking on open stocks account, a page will open in which one has to enter the details regarding occupation, income, father’s and mother’s name to finish the process.
- Click on the ‘Next’ tab to continue and enter the trading experience. Again, hit on the ‘Next’ option.
- The next step is to upload a signature following the instructions appearing on the screen.
- After that, an individual has to submit their Aadhaar based e-sign.
- After reading the Demat account opening form, one has to click on ‘Sign Now’ to continue.
It will direct to the page appearing as NSDL Electronic Signature Service. An individual has to enter their Aadhaar number or virtual ID and then hit on send OTP. Once, entered OTP, a message ‘Signed Successfully’ will appear on the screen.
How to Buy/ Sell Shares on Groww App?
- Buying Stocks on Groww: All the vital information like Sensex and Nifty live updates appear on the home screen of the app. There are various filters and a search bar in which one can enter the name of the stock to invest in. Once an individual goes through all the necessary details and fundamentals of the company, they can place or limit orders for delivery. One has to add money to Groww balance to complete the purchase of a share in case of insufficient balance.
- Selling Stocks on Groww: Visit the stocks dashboard on the Groww website or app and select the stock to sell. Tab on the option ‘Verify Sell’ and then on ‘Verify using TPIN’. Once verified, an individual will get redirected to the order page where they can finish the sell order.
What are the Stocks Investment Charges Over Groww?
- Equity Delivery: The broker charges on buy orders when equity is carried in the Demat account. These charges are free on Groww.
- Account Maintenance Charges: There is an account maintenance charge (AMC) for managing the Demat account and trading. Groww charges Rs. 25 per month plus GST charged quarterly.
- Equity Intraday: The broker charges it when one buys or sells on the same day. Groww charges 0.01% of the order value or Rs. 20 per executed order.
- DP Charges: Charged by DP for crediting or debiting stocks to/from Demat account. These charges are free to buy orders but cost Rs. 8 + Rs. 5.50 price per ISIN each day to sell order.
- Transaction Charges: Groww charges 0.00325% of the order amount on NSE and 0.003% on BSE for trading.
- Clearing Charges: The clearing corporation of NSE (NSSCL) and BSE (ICCL) controls this charge. It is free on Groww.
- Payment Gateway Charges: It is free of cost to deposit money in Groww Balance.
- Stamp Duty: State Government charges stamp duty for agreement note. It is different for every state.
- SEBI Turnover Charges: Securities and Exchange Board of India handle these charges for regulating the markets. 0.0001% of charges are added through Groww.
- GST: It is Goods and Services Tax applied 18% on charges wherever relevant.
- STT: When an individual transacts on exchanges then the government charges Securities Transaction. 0.1% of the order sum is charged equity delivery, and 0.025% for equity intraday.
Conclusion on Groww for Investing in Stocks
Grows offers multiple options to invest money through NEFT, UPI, or net banking. The app does not recommend or advise any stocks. one should define financial goals to clarify how and which stocks are best to invest before making an investment.