When my bank branch relationship manager called me two years ago urging me to start a mutual fund SIP, I almost signed the papers. Luckily, I checked the fine print first. The scheme he offered was a "Regular" plan that paid his bank a 1.2% recurring distributor commission every year straight out of my retirement corpus.
That was the moment I switched to Groww.
Groww lets retail investors buy Direct Mutual Funds with flat 0% distributor commission, zero transaction fees, and zero hidden platform charges.
Here is why that tiny 1% commission difference adds up to lakhs of rupees over time, and how you can set up your first direct SIP in under three minutes.
Regular vs. Direct Mutual Funds: The Staggering Math
Most people do not realize that every mutual fund in India exists in two formats: Regular and Direct. Both hold the exact same stocks, manage the same portfolio, and have the exact same fund manager.
The only difference is the middleman fee:
Regular Plans (Sold by banks and brokers): The fund house deducts 1% to 1.5% every year to pay the agent who sold you the fund.
Direct Plans (Available on Groww): You invest directly with the fund house. No agent exists, so that 1% to 1.5% stays inside your portfolio to compound year after year.
Prove the Math: What Happens to a ₹5,000 Monthly SIP Over 20 Years?
To see the real-world impact of zero commission, look at what happens if you invest ₹5,000 every month at an average 13% annual market return:
Investment Horizon | Total Amount Invested | Regular Plan Value (11.5% Net Return) | Direct Plan on Groww (13.0% Net Return) | Extra Wealth in Your Pocket (Direct Advantage) |
5 Years | ₹3,00,000 | ₹4,08,000 | ₹4,24,000 | +₹16,000 |
10 Years | ₹6,00,000 | ₹11,35,000 | ₹12,38,000 | +₹1,03,000 |
15 Years | ₹9,00,000 | ₹24,30,000 | ₹28,15,000 | +₹3,85,000 |
20 Years | ₹12,00,000 | ₹47,38,000 | ₹58,45,000 | +₹11,07,000 Pure Extra Wealth |
By simply choosing a Direct plan on Groww instead of buying a Regular plan through your bank, you save over ₹11 Lakhs in middleman commissions on a modest ₹5,000 monthly SIP.
Step-by-Step: How to Set Up Your First SIP on Groww
Setting up an automated monthly SIP took me less than three minutes:
Open the Groww app: Tap the "Mutual Funds" tab at the bottom of the home screen.
Search for your preferred fund: Type the name of the scheme (such as an aggressive hybrid fund, Nifty 50 index fund, or flexi-cap fund). Groww automatically lists all schemes as Direct - Growth.
Review historical returns and expense ratios: Check the fund’s performance against its benchmark index and verify that the expense ratio is competitive.
Choose "Start SIP": Enter the amount you wish to invest each month (starting from as low as ₹100 or ₹500).
Select your monthly investment date: Pick a day that falls shortly after your salary arrives (for example, the 5th or 10th of every month).
Authorize UPI Autopay or Bank Mandate: Authenticate with your UPI PIN to approve the recurring mandate. Groww will automatically deduct the chosen amount once a month on that exact date.
How to Open Your Account with Zero Charges First
Before you start setting up your mutual fund portfolio, make sure your Groww profile is activated through the official referral channel to lock in your lifetime free account benefits.
Follow our step-by-step Groww referral code and link activation guide to apply code YR9QXQ during registration and unlock your free Demat account in minutes.
Frequently Asked Questions (FAQ)
Does Groww charge any commission on mutual funds?
No. Groww offers 100% direct mutual funds with zero distributor commissions and zero transaction fees.
What is the minimum SIP amount on Groww?
You can start a monthly mutual fund SIP on Groww with as little as ₹100 or ₹500, depending on the specific fund house rules.
Can I pause or stop my Groww SIP anytime without a penalty?
Yes. You can pause, modify, or permanently cancel your SIP through the app at any time without paying any cancellation penalty.