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Written by Aditya Raj Singh on February 4, 2021
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Is it safe to invest through Groww app?

Initially, when people started investing everything was offline but with the internet boom, came digitalization, and investing was made simple with the help of many mutual funds apps like Groww. These mutual funds apps are primarily distributors which allows you to invest your money at several places and get maximum returns.

While many people scare away from investing online, apps like Groww have been successful in winning the trust of millions of investors because of their security measures.

While many decide to go with what they hear (positive or negative) I want to be analytic and see for the process and security measure the app follows.

The Safety Factors

Groww is an investment platform that is governed by strict guidelines laid by regulatory authorities and works within the compliance rules set. The data is absolutely safe, and all information is confidential, and there is no data laundering involved.

Investing apps ask for personal details like Adhaar number and Pan card information also asks you to get KYC (Know Your Customer) verified.

It stores all personal information using 256-bit encryption and does regular vulnerability scans to leave no room for error.

I saw that in the investing process, at no given point of time do Groww handles your money directly, it is an intermediate, and all transactions of investments are routed through the BSE MF Star Platform.

Also, Groww is regulated by RBI (Reserve Bank of India). The money redeemed by profits is transferred from the AMC account to BSE (Bombay Stock exchange) after which the BSE credits are transferred to your account, all safe and secure!

The Process

When you decide to invest in Mutual Fund, the Groww app offers 3000+ mutual funds over 30+ AMC’s.

When you select the mutual fund you like, you can simply invest in it via the app and need to make the payment.

Following this, you're redirected to a completely secure BSE page where you add your details. Upon successful payment, BSE directs the money to your mutual fund’s AMC (Asset Management Company).

The Result

With investing via Groww app, it becomes very easy and accessible for even a non-investor to start investing in mutual funds, that too in a completely safe and secure environment because your money is either with you or your mutual fund AMC, Groww app is just a mediocre in between to make the process easy for you.

So I can very well say that Yes, it is safe to invest through Groww app.

Happy Investing!

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