Groww accounted for 40% of direct plan SIP inflows in mutual fund industry

Investment platform accounts for 40% of direct-plan SIP inflows of the industry

Nearly 40 per cent of the total systematic investment plan (SIP) inflows into direct mutual fund (MF) schemes are routed through Groww, according to an analysis of data shared by the company in its initial public offering (IPO) documents and industry data on direct plan inflows. 

Users of the platform invested ₹34,028 crore through SIPs in 2024-25 (FY25). The amount is 39 per cent of the ₹87,435 crore SIP inflows into direct plans.

 

Compared to the total SIP inflows of ₹2.9 trillion (including that of regular plan), the share stood at 12 per cent.   

The largest distributor of direct plan mutual fund schemes has sharply expanded its market share over the past three years. It was aided by the rise of do-it-yourself (DIY) investors and the growing ease of investing through digital platforms. 

"The lower expense ratios for direct plans alongside easier access through new-age platforms has led to greater adoption.

 

It led to direct plans constituting 47 per cent of the total MF average assets under management (AUM) as of March 2025, up from 45 per cent as of March 2020," Groww stated in its draft red herring prospectus (DRHP). 

The growing SIP inflow share along with lumpsum investments has placed Groww in the fourth spot in the MF distributor list. With total MF AUM linked to its clients at ₹1.1 trillion, it was only behind State Bank of India, NJ IndiaInvest and HDFC Bank in FY25.   

One-time incentive for founders

 

Groww has awarded a 1-time perfor­mance-linked payout of ₹626 crore to its four founders. According to the DRHP, Chief Executive Officer Lalit Keshre received ₹188.6 crore, Chief Opera­ting Officer Harsh Jain ₹149.6 crore, Chief Financial Officer Ishan Bansal ₹137 crore and Chief Techn­ology Officer Neeraj Singh ₹151.3 crore. Sources said the payout was tied to meeting profitability milestones. (BS REPORTER).