I want to understand where my money goes if I buy mutual fund on Groww.Asked
When buying mutual funds on Groww, the bank account details is also needed along with other basic details and documentation.
The amount from the investor’s bank is deducted online when investment is mutual funds is made via Groww. The debited amount directly goes to the AMCs via Bombay Stock Exchange (BSE). The amount never comes to Groww.
If the investment is made by an investor in HDFC Prudence Fund, then the amount debited from investor’s account goes to the HDFC Asset Management Company Ltd.
For this investment made, the investor is allotted units for the mutual fund invested in. Groww serves as a platform for investing in mutual funds.