Financial service platform Groww has added over 1 million new SIPs (Systematic Investment Plans) in January, accounting for 25 per cent of total new SIPs in the country. The company has added 12 lakh SIPs in January, while the industry number was 51.84 lakh. While, in December 2023, new SIP accounts added on Groww was 10 lakh, while the industry number was 40.8 lakh.

The platform saw a nearly 3X year-on-year jump as the company had added 3.9 lakh new SIP accounts.

Groww, the largest player in this segment in terms of new plans being added monthly, had an average SIP value of between ₹2,000 and ₹2,500.

Digital infra

Industry insiders believe that SIPs have gained traction owing to their structured and enduring investment approach. Additionally, the digital public infrastructure like aadhar, e-KYC has removed a lot of friction for customers and that has enabled growth for the industry as a large part of the growth has come from beyond metro cities.

Further, retail investors are now more aware of the benefits of direct mutual funds, over regular funds as direct funds help save commission fees, which can be significant for long-term investors, they added.

SIP is an investment methodology offered by mutual funds wherein an individual can invest a fixed amount in a chosen scheme periodically at fixed intervals — say once a month, instead of making a lumpsum investment. At present, the SIP installment amount can be as small as ₹500 per month.

Groww posted profits of ₹448.7 crore, while revenues stood at ₹1,277 crore in FY23, reported businesssline. Founded in 2017 by Harsh Jain, Lalit Keshre, Neeraj Singh, and Ishan Bansal, Billionbrains Garage Ventures Pvt Ltd, the parent entity of Groww, lets users invest in stocks, exchange-traded funds (ETFs), and IPOs.

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