Understanding Groww’s New Direction and Why It Matters

Groww, one of India’s most popular platforms for direct and index mutual fund investing, has made a big move. The platform has launched the Groww Multicap Fund with both Direct and Regular Plans.
This is a surprising shift for Groww, which is known for helping people invest on their own with low costs and no middlemen. So why is Groww now offering active mutual funds and Regular Plans with advisor support?

The answer is simple: as investors grow and markets become more complex, many people need expert guidance to make better decisions and build stronger portfolios.

1. Why Active Mutual Funds Still Work in India

India’s stock market is still growing and developing. Unlike mature markets like the US, there are many chances here to find undervalued stocks and earn better returns.
A. High Growth in Small, Mid, and Large Companies
India’s small-cap stocks have delivered over 33 percent annual returns in the last five years. Mid-cap and large-cap stocks are also performing well. Skilled fund managers can take advantage of these growth opportunities.
B. Booming Sectors
Sectors like healthcare, technology, and consumer products are growing fast. For example, the Nifty Healthcare Index gave 58 percent returns in just one year. Active fund managers can identify and invest early in such sectors.
C. More Price Opportunities
Since the Indian market is not fully efficient yet, fund managers still have many chances to find good companies at the right price. This helps generate better returns compared to just following an index.

2. Why Groww Is Now Offering Regular Plans

By offering Regular Plans, Groww is saying that advice matters. As your investments grow, your needs become more complex. Regular Plans connect you with professional advisors who help you make smart decisions.
A. Understanding Risk Properly
Sometimes investors choose funds that do not match their comfort level or goals. For example, investing in a high-risk small-cap fund may not suit someone with a low risk appetite. Advisors help you invest based on your personal risk profile.
B. Looking Beyond Past Returns
Most people only check past returns. But an advisor will guide you to also look at other important points like fund manager experience, consistency of returns, diversification, and overall strategy.
C. Building a Balanced Portfolio
Advisors help you invest across different types of funds and asset classes. This balance lowers risk and improves long-term growth.

3. Where DIY Investing Can Fall Short

Investing on your own is fine when your needs are simple. But without proper knowledge and planning, it is easy to make costly mistakes.
A. Emotional Reactions to Market Ups and Downs
When markets fall, many people panic and sell their investments. In bull markets, they often invest in risky options. Advisors help you stay calm and focused.
B. Lack of Diversification
DIY investors often put too much money in a few popular sectors or funds. This can increase risk. A good advisor makes sure your money is spread wisely.
C. Ignoring Risk and Volatility
Just chasing high returns can be dangerous. Advisors help you understand the real risk behind a fund by looking at important metrics like volatility and performance consistency.

4. Groww’s New Direction: A Smart Hybrid Model

Groww is now combining its strong digital platform with expert advice. This hybrid model gives investors the best of both worlds technology and personal guidance.
Benefits for Investors:

• Access to experienced advisors

• Help during market ups and downs

• Well-planned portfolios for long-term goals

• Timely rebalancing and proper risk management
  This change shows that even a do-it-yourself platform like Groww understands the growing need for personal advice and deeper financial planning.

Conclusion:

At Shree Radha Financial Services, we believe wealth creation is not just about investing it's about making smart, informed decisions with the right guidance. As your financial partner, we help you build a strong, goal-focused portfolio tailored to your needs. With expert advice and a client-first approach, we simplify your wealth journey and help you grow with confidence.