Groww Records Over 47 Lakh New SIPs in July-September Quarter

In the July-September quarter of 2024, Groww, one of India’s leading mutual fund investment platforms, reported an impressive addition of over 47 lakh new Systematic Investment Plans (SIPs). This reflects the growing popularity of SIPs as a preferred investment strategy, particularly among younger investors and those from non-metro cities. The surge in new SIPs is indicative of a broader shift toward financial planning and savings in India.

During this period, the platform witnessed a record-breaking 16 lakh new SIPs added in September alone, contributing significantly to the 66 lakh new SIPs recorded by the Association of Mutual Funds in India (AMFI) for the same month. This growth marks a notable increase compared to the same quarter in 2023, with the number of new SIPs nearly doubling year-over-year.

Much of this growth can be attributed to the rising participation of younger investors. Over 50% of Groww’s new SIP contributors are under the age of 35, underscoring the platform's appeal to a digitally savvy and financially conscious younger generation. This demographic is increasingly looking to secure their financial future through systematic, disciplined investment approaches like SIPs, which offer flexibility and long-term benefits.

Additionally, female participation in SIP investments has seen a significant rise, with approximately 24% of Groww’s new SIP contributors being women. This surpasses the national average of 17% for female participation in financial investments, highlighting a positive trend in gender inclusion within the investment landscape. As more women become involved in financial planning, platforms like Groww are facilitating this growth by providing easy access to investment options and simplified payment mechanisms.

One of the key factors driving this growth has been the adoption of UPI autopay, which simplifies the SIP payment process for investors. By automating payments, Groww has made it easier for users to stay consistent with their investments, contributing to the platform’s growing popularity among retail investors.

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Interestingly, nearly 80% of Groww’s SIP transactions originated from non-metro cities, reflecting a growing interest in systematic investments among retail investors from smaller towns and cities. This shift highlights the increasing financial inclusion across various regions of India, as more people in smaller towns begin to see the value of regular, disciplined investments. The top five states contributing the most SIPs from B30 (Beyond the Top 30) cities were Maharashtra, Uttar Pradesh, West Bengal, Bihar, and Rajasthan, demonstrating a strong regional distribution of investors.

Groww's SIPs comprised 86% of the platform's total mutual fund investment volume during the quarter, with the remaining 14% coming from lumpsum investments. The average SIP value per customer also saw a significant increase, rising to over ₹6,000, reflecting the growing confidence of investors in their financial strategies.

Harsh Jain, Co-founder and COO of Groww, remarked on the platform’s remarkable growth and the broader financialisation of savings in India. He emphasized that the increasing participation of younger and female investors is a testament to the changing financial landscape of the country. He also highlighted the role of UPI autopay in simplifying the investment process, which has made it easier for investors to commit to long-term financial goals without worrying about missed payments.

The growth of SIPs on platforms like Groww is an encouraging sign for India’s financial markets. As more retail investors from diverse regions and demographics engage with systematic investment strategies, the country’s financial ecosystem is becoming more inclusive. This shift is also helping individuals take control of their financial futures through disciplined savings and investment plans.

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Looking ahead, Groww is likely to continue playing a key role in driving financial inclusion and investment awareness across India. The platform’s focus on simplifying the investment process and reaching out to younger and underrepresented demographics positions it well to capture a growing share of the retail investment market.