India’s largest mutual fund investment platform, Groww, has introduced a new service called MF Prime. After the launch, some users were worried that the platform was moving everyone to regular mutual fund plans.
However, Groww has clarified that self-investors can continue investing in direct mutual fund plans for free, with no changes to their current experience.
Direct Mutual Fund Investing Will Continue
According to Groww, MF Prime is meant for investors who want expert guidance while managing their mutual fund investments.
If you prefer to choose and manage your investments on your own, you can continue investing in direct mutual fund plans without paying any extra fees.
The company also said that it started testing MF Prime with a small group of users in January. After receiving positive feedback, the service is now being launched for more customers.
What Does MF Prime Offer?
Investors who choose MF Prime will have their future mutual fund investments made through regular plans. However, their existing investments will remain in direct plans.
If users later decide they no longer want MF Prime, they can easily switch back to direct plans through the app’s settings.
Groww Responds to User Concerns
Replying to users on social media platform X, Groww said that nothing changes for DIY (Do-It-Yourself) investors.
The company stated that direct plans, fees, and the overall investing experience will remain the same for self-investors. It also denied claims that it has changed its approach to mutual fund investing.
How MF Prime Works
MF Prime combines recommendations from Groww’s research team with advanced technology to help investors make better decisions.
The system reviews mutual funds based on factors like performance, risk, and overall value. It then suggests whether investors should buy, hold, exit, or rebalance their portfolio according to their financial goals, risk tolerance, and investment timeline.
Groww said the feature was launched only because many users wanted investment guidance. Meanwhile, its free direct mutual fund service will continue as before.
At present, Groww has more than 10 million mutual fund investors, with over ₹1.9 trillion in assets under management (AUM) in direct mutual fund schemes.
