MANSI BHARAT GADA DEGREE COLLEGE OF COMMERCE

(Affiliated to University of Mumbai)

(NAAC Accredited “B” grade and ISO 9001:2015 Certified)

“A STUDY ON PORTFOLIO MANAGEMENT WITH

REFERENCE TO GROWW”

Submitted in partial fulfillment of the requirements

of the degree of

Bachelors of commerce (Accounting & Finance)

by

NANDINI VINAYKUMAR GUPTA

Under the guidance of

PROF. MITESH GOSRANI

UNIVERSITY OF MUMBAI

2024-2025
 OSWAL SHIKSHAN AND RAHAT SANGH SANCHALIT

MANSI BHARAT GADA DEGREE COLLEGE OF

COMMERCE
(AFFILIATED TO UNIVERSITY OF MUMBAI AND NAAC ACCREDITED "B"
GRADE & ISO 9001:2015 CERTIFIED)

Certificate

This is to certify that Ms. NANDINI VINAYKUMAR GUPTA, has

worked and duly completed his project work for the degree of bachelor
of commerce (Accounting & finance) under the faculty of commerce in
the field of
accounts and his project is Entitled “ A STUDY ON PORTFOLIO
MANAGEMENT WITH REFERENCE TO GROWW” under my
supervision.

I further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for any
Degree or Diploma of any University.

It is his own work and facts reported by his personal finding and investigations.

Name And Signature Of The Guiding Teacher

Date of submission
 Declaration

I The Undersigned Ms. NANDINI VINAYKUMAR GUPTA Here By,

Declare That The Work Embodied In This Project Work Titled A STUDY ON
PORTFOLIO MANAGEMENT WITH REFERENCE TO GROWW” Forms
My Own Contribution to The Research Work Carried Out Under The
Guidance Of Mr. Mitesh M. Gosrani Is A Result Of My Own Research Work
And Has Not Been Previously Submitted To Any Other University For Any
Other Degree/ Diploma To This Or Any Other University.

Wherever Reference Has Been Made To previous Works of Others, It Has

Been Clearly Indicted as Such and Included in The Bibliography.

I, Here by Further Declare That All Information of This Document Has Been
Obtained and Presented in Accordance with Academic Rules and Ethical
Conduct.

Name And Signature Of Learner

NANDINI VINAYKUMAR GUPTA

Certified By

Name And Signature Of The Guiding Teacher

MR. MITESH M. GOSRANI
 Acknowledgment

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal, Mr. Mitesh M. Gosrani for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator, Mr. Mitesh M. Gosrani for
his moral support and guidance.

I would also like to express my sincere gratitude towards my project guide

Mr. Mitesh M. Gosrani whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.
 Abstract

This study focuses on portfolio management with a specific reference

to Groww, a leading online investment platform. Portfolio
management involves strategic allocation of assets to maximize
returns while minimizing risk, tailored to the investor's financial goals,
risk tolerance, and investment horizon. The research aims to explore
Groww’s approach to portfolio management, examining its features,
user experience, and the tools it provides for individuals to manage
their investments effectively. Through a combination of qualitative
and quantitative analysis, the study evaluates how Groww facilitates
diversified portfolio creation and tracks performance across various
asset classes such as mutual funds, stocks, and ETFs. Additionally, the
research investigates the role of technology and data analytics in
enhancing portfolio management and providing personalized
investment advice. The findings aim to contribute to the understanding
of digital portfolio management platforms and offer insights into how
they are reshaping the investment landscape for retail investors.
 CHAPTER-1

INTRODUCTION

Summary

Nowadays many companies are facing a number of the four biggest universal problems
such as too many active projects, often double what an organization should have; many of
these are wrong projects that will not provide value to the organization; projects are not
linked with the strategic goals of an organization and thus they do not meet the goals of the
organization; furthermore, even if every active project is a positive one, there is an overall
imbalance in resource utilization, and in short and long term projects. The main problem
that was identified was evident wastage through improper selection of projects or their
improper formulation, an undefined or unclear ROI. Projects are forced to compete for
resources. The question that I asked was how an organization can determine if the
collection of projects chosen is healthy and will provide the company with value and new
opportunities. Hence the purpose – how might project portfolio management improve and
promote the organization’s chances of success? To achieve this purpose, I sought to explore
the enterprise project portfolio management in a project-driven organization with a blend
of customer and R&D projects. The choice of the company was given due to a fact that I
have worked in such the company for many years where projects are seen as critical to
success of the company. Therefore, the impact of projects on the company’s competitive
positioning is immense. I have found that there is an unclear understanding of what project
portfolio management is. Some units claim that the application of project portfolio
management is in full pace; others show an interest in the discipline, conceding that they
do not know enough about it; others view project portfolio management as just another
technique of project management with a new label to what we have practiced many years,
namely project management. I aim to investigate to what extent the project portfolio
management is implemented in different organizational units in a company if it is
implemented at all and how project portfolio management can contribute to the success of
the company. Dealing with this challenge has not been so easy due to the facts mentioned
previously. One of my ambitions with this thesis was to increase interest in and awareness
of project portfolio management. Project portfolio management ensures that the collection
of projects chosen and completed meets the goals of the organization. This is a qualitative
study. I collected data through scientific articles and books written specifically about this
area in order to acquire a good level of knowledge. I conducted a case study where the data
is primarily gathered through interviews. I analyzed the findings looking specifically at the
main factors concerning the extent of application of project portfolio management and a
common understanding about it in the company. I looked also to the main elements of
project portfolio management and tried to find the additional requirements that should be
fulfilled for a successful implementation of project portfolio management.
 •
INTRODUCTION TO PORTFOLIO MANAGEMENT:

The term ‘portfolio management’ is made up of two words. Let’s first understand
what these mean individually.

In mature project management organizations, project management exists in a wider

context that is governed by program and portfolio management. The organization’s
strategies and priorities are interrelated and have links to portfolios and programs, as
well as between programs and individual projects. Organizational planning
influences projects by setting project priorities based on risk, funding, and the
organization’s strategic plan. Organizational planning can direct funding and support
to component projects based on risk categories, specific activities, or general types
of projects, such as improving infrastructure or internal processes.

A portfolio is a set of projects or programs and other work, combined with the goal
of effectively managing this work, to achieve strategic goals. Portfolio projects and
programs are not necessarily interdependent or directly related. The strategic goal
“to increase return on investment” can build a portfolio consisting of various projects
in the gas and oil industry, energy industry, water supply, and projects for road,
railway facilities, and airports. From this set of diverse projects, a company can select
a series of related projects and incorporate them into one program. For example, all
projects for the construction of energy infrastructure facilities can be classified into
a program for the development of infrastructure in the energy sector. Similarly, all
projects for the construction of water supply infrastructure you can group into a
program for the development of a water supply infrastructure.
 •

What is a Portfolio?

As per portfolio definition, it is a collection of a wide range of assets that are

owned by investors. The said collection of financial assets may also be valuables
ranging from gold, stocks, funds, derivatives, property, cash equivalents, bonds,
etc. Individuals put their money in such assets to generate revenue while ensuring
that the original equity of the asset or capital does not erode.
Depending on one’s know-how of the investment market, individuals may either
manage their portfolio or seek the assistance of professional financial advisors
for the same. As per financial experts, diversification is a vital concept in
portfolio management.

• Components of a Portfolio

The assets that are included in a portfolio are called asset classes. The investor
or financial advisor needs to make sure that there is a good mix of assets in order
that balance is maintained, which helps foster capital growth with limited or
controlled risk. A portfolio may contain the following:

1. Stocks
Stocks are the most common component of an investment portfolio. They refer
to a portion or share of a company. It means that the owner of the stocks is a part
 •
owner of the company. The size of the ownership stake depends on the number
of shares he owns.
Stocks are a source of income because as a company makes profits, it shares a
portion of the profits through dividends to its stockholders. Also, as shares are
bought, they can also be sold at a higher price, depending on the performance of
the company.

2. Bonds
When an investor buys bonds, he is loaning money to the bond issuer, such as
the government, a company, or an agency. A bond comes with a maturity date,
which means the date the principal amount used to buy the bond is to be returned
with interest. Compared to stocks, bonds don’t pose as much risk, but offer lower
potential rewards.

3. Alternative Investments
Alternative investments can also be included in an investment portfolio. They
may be assets whose value can grow and multiply, such as gold, oil, and real
estate. Alternative investments are commonly less widely traded than traditional
investments such as stocks and bonds.

Types of Portfolios

1. The Aggressive Portfolio

Aptly named, an aggressive portfolio is aggressive because it aims for higher
returns and often undertakes higher risks to achieve this objective. Generally,
this portfolio includes several high beta stocks. These stocks show higher
fluctuations as compared to the overall market. Take, for instance, a stock with
a high beta over 1.5 or 2.0. Such shares will move higher or lower almost twice
as the market’s shift, which means you could double your profits or losses.
Aggressive investors don’t always go for household names in stocks or financial
assets. They often prefer companies that are still in their initial growth stages and
have a unique value proposition that can garner spectacular returns for the
commensurate risks.
If you want to build such a type of portfolio, it is a good idea to lean towards
sectors like the technology sector that offer enormous upswing opportunities.
Yet, it would be best if you employed your rationality here as well. While aiming
for the highest returns, make sure that your losses don’t outnumber your profits.

2. The Defensive Portfolio

On the contrary, a defensive portfolio doesn’t comprise of stocks with a high
beta value. Such shares generally stay unaffected by market movements. These
 •
stocks are pretty safe to invest in as they involve minimal risk. Neither do they
give extravagant returns in upswings nor excessively crash during the business
cycle’s lows. For instance, even in times of an economic downturn, the
companies that make survival essentials or daily needs products like food,
utilities are likely to weather the storm as customer demand remains strong.
It is pretty easy to boil down on a choice of assets in a defensive portfolio. Think
about the products that are an absolute must for you throughout the day and
invest in the companies which make them. A defensive portfolio is a safe bet for
risk- averse investors.

3. The Income Portfolio

An income portfolio focuses on gaining from dividends or other recurring
benefits provided to shareholders. Though it has quite some commonalities with
a defensive portfolio, one significant difference is that it banks on stocks with
relatively higher yields.
Real estate is an excellent example of the same. It provides a higher share of
profits along with favourable tax benefits in return. One advantage of investing
in stocks in the real estate sector is that you can enjoy all the benefits of investing
in such a booming industry without breaking a sweat over owning property.
However, one drawback here is that real estate isn’t very resilient during
economic downturns.
If you want to build this portfolio type, you should look out for such stocks
which are not so common yet provide pretty good dividends. You can also hunt
for FMCG, utilities, and other stable industries. If you are looking for your
portfolio to act as an active supplement to your monthly pay check or something
that will back you up during your retirement days, this is a pretty good option.
The speculative portfolio requires a high-risk appetite, so much so that it is often
compared to gambling. Here, the portfolio is not just aggressive but is also a bet
on what product or service offering could work very well in the future. Initial
Public Offers (IPOs) or takeover targets fit well into the speculative portfolio
type. Technology firms or health care firms working on cutting-edge research or
breakthrough discoveries also fall into this category.
Not every investor has such a high-risk appetite. Financial advisors recommend
capping speculative assets in a portfolio at 10 percent or lower. Moreover, first-
time investors must take a call prudently.
It requires massive research and experience to know the companies you can count on
to deliver phenomenal returns.

4. The Hybrid Portfolio

As the name suggests, such a type of portfolio commands you to invest in an

amalgamation of asset types with varying fundamentals to earn the best of both
growth and dividend-yielding investments. Such a portfolio provides maximum
flexibility. A hybrid portfolio is a balance of high-yield equity returns and fixed
income instruments such as debt funds and bonds.
 •

5. Growth portfolio

From the name itself, a growth portfolio’s aim is to promote growth by taking
greater risks, including investing in growing industries. Portfolios focused on
growth investments typically offer both higher potential rewards and concurrent
higher potential risk. Growth investing often involves investments in younger
companies that have more potential for growth as compared to larger, well-
established firms.

6. Value portfolio

For value portfolios, an investor takes advantage of buying cheap assets by

valuation. They are especially useful during difficult economic times when
many businesses and investments struggle to survive and stay afloat. Investors,
then, search for companies with profit potential but that are currently priced
below what analysis deems their fair market value to be. In short, value investing
focuses on finding bargains in the market.

• Factors that Affect Portfolio Allocation

When making investment decisions, an investors’ portfolio distribution is

influenced by factors such as personal goals, level of risk tolerance, and
investment horizon.
1. Goal factors
Goal factors are individual aspirations to achieve a given level of return or saving for a
particular reason or desire. Therefore, different goals affect how a person invests and
risks.

2. Risk Tolerance
Investors’ risk appetite impacts how they are going to allocate their financial assets and
investments into their portfolio. One can quickly gauge the risk tolerance level of an
investor from the component of their portfolio.
For instance, conservative investors are often more inclined to build a portfolio that
comprises large-cap value stock, investment-grade bonds, cash equivalents, market
index funds, etc. Conversely, individuals with a high-risk appetite may include
investments like small-cap and large-cap growth stock, high-yield bonds, gold, oil, real
estate, etc. in their portfolio.

3. Time horizon
The time-frame of putting money on a particular investment option is also quite crucial
for building a profitable portfolio. As the general rule suggests, investors should modify
their portfolio to achieve a conservative asset allocation mix as they approach nearer
to their financial goals. It is followed to prevent accumulated earnings of their
investment portfolio from eroding.

Typically, investors who are nearing their retirement are recommended to invest a
more significant portion of their portfolio in less risky assets like – cash and bonds
and the remainder in higher-yielding options. On the other hand, those who have just
begun their career are suggested to invest the larger portion of their portfolio into
 high risk-reward investment options for the long haul. A longer time frame will help
them to ride out the short-term market fluctuations and losses.
Other than this, investors’ financial goal is another important factor that influences
the portfolio allocation. To elaborate, those with long-term goals are more likely to
invest in long-term investment options like – equity funds, ULIPS, stocks, debt
mutual funds. Alternatively, those with short-term goals tend to prefer liquid mutual
funds, recurring deposits, government bonds, treasury bills and more.

3. Income
The money you earn plays a big role in asset allocation as your income is directly
correlated to your investing power. The impact of income on asset allocation can be
explained by a classic example.
Salaried professionals who can expect to earn a regular pay check will have more
certainty about their asset allocation compared to a businessman whose investing
power hinges on his monthly profit/loss.

4. Age
With age, comes responsibilities that can directly affect your portfolio asset
allocation. Investors in their 20s may have fewer liabilities than an investor in their
30s. This implies two things when it comes to age: Risk-taking capacity may
diminish over time Ability to deal with financial loss may reduce over time
Thus, age can determine whether you follow an aggressive, moderate, or
conservative asset allocation approach. It can also lead to a gradual re-balancing act
as time passes.

5. Financial Goals
Your financial goals can determine what type of portfolio asset allocation strategies
you should follow. For example, you’re in your 30s and your goal is to retire by 50.
You’d want to invest aggressively to generate high gains in order to ensure that the
goal is met. Your portfolio asset allocation would be a representation of this goal.
Moreover, investors can rebalance their portfolio allocation based on how close or
far they are to achieving their financial goals. Other scenarios for revisiting asset
allocation include: Holding on to bad investments new investment opportunities
Emerging trends or market

• Need for Portfolio Management

Portfolio management is different from project management in that it encompasses

the entire lifecycle – from ideation through the realization of the benefits it set out to
provide. Portfolio management includes project management as a phase of the project
lifecycle which focuses on, and is best at, the execution phase of a project. But as we
all know; projects are more than just tasks and issue solving. Projects truly begin at
the ideation stage and although some do not make it through execution to the
realization of benefits of the investment, portfolio management accounts for that
entire process.
 Let’s take a look at the lifecycle of a project that is reflected in portfolio management:
Ideation stage, creating a business case, prioritization of the initiatives that warrant
investment, selection, planning the process and resources to carry out the initiative,
execution of the initiative, and ultimately ROI. For each stage, there is a process, and
IT leaders understand that while some projects are inevitable, others are strategic. And
the strategic ones are the ones that make the difference.
Portfolio management is important in business because there are factors to consider
that affect the success of the project, and thus the organization, as well as unexpected
benefits from the investment. For example, sometimes it is what a Project
Management Office (PMO) chooses not to do that is the most important. By
prioritizing and consciously choosing not to undertake projects that do not benefit the
business or take away from time and resource capacity from higher priority projects,
PMOs become more efficient and are better able to focus on the projects that matter.
This focus results in better and faster execution or project management.
Many projects also begin by supporting overall business goals and for one reason or
another, by the end they no longer serve that value. Either the business goals have
changed, more important things have come up, new technology has come out that
changes the project (this especially happens in product development projects), or the
project has simply lost value because the main stakeholder is no longer a stakeholder.
For any of these reasons or others, projects often change directions, and organizations
need to adapt along the way. By managing projects as part of a portfolio, the dynamic
changes because you enable the portfolio to be successful – even if some of the
projects in it fall short – and help drive the desired outcome for your organization.
Here are a few benefits when moving to a portfolio management approach:

Strategic Alignment
Portfolio Management is an inherent way to strategically align your projects with the
goals of the business. As you map out your portfolio and your resources that are to be
assigned to certain projects, you make sure you they are the projects that support the
needs of the business. However, we know these changes as you go along and you need
to adapt. By managing a portfolio of projects, it becomes easier to identify the projects
that are better suited to meet your needs, and reduce the investment or abandon projects
that no longer serve the needs it intended to. In doing this, your business benefits from
investing in projects that are the highest likelihood of added value and ROI.
Strategic alignment is especially strong in top-down portfolio management
approaches. Top down is an “alignment-first” approach to portfolio management
where requests are only accepted if they are aligned with business goals. Projects are
prioritized and resources are assigned based on those prioritized projects, and
executed from there. Essentially, planning and reporting are the critical elements
where goals are identified and benefits are realized. Conversely, bottom-up portfolio
management puts the emphasis on the execution of projects, making sure tasks are
executed, and thus increasing project success through individual contribution. In
either case, by managing projects in a portfolio, you have the advantage of executing
the right projects for the business.
Resource Management
Resources are an organization’s most valuable asset; and also the biggest challenge
more often than not. Managing those resources in an effective, efficient, and optimized
manner is extremely challenging. For most organizations, resource management is one
of those things that may be done “well” but you always feel like it could be “better.”
For better resource management, managing a portfolio is much easier to think about.
You can see resources across the portfolio, utilization among various projects and
across applications. By having a good understanding of what resources are actually up
to and a realistic representation of what their utilization looks like, project resources
become much more manageable from a portfolio perspective.

Planning and Reporting

We all want to know what we are getting out of our investments before we take the
plunge. But there is always some degree of risk involved; if all projects were a sure
thing, it would take the fun out of managing them. However, some level of
predictability is comforting, and by having a systematic way of continuously improving
the forecast of the projects with each new addition helps too. With portfolio
management, planning for projects (and resources) is continuous and evolutionary as
projects progress and people get shifted around. Reporting also plays a big role in this,
as you are able to see the results of the plan after it is executed to adjust planning
moving forward, and understand the benefits of the investment. Whether you are
reporting on different metrics, gaining visibility, or arguing for more resources, having
the ability to report on the portfolio as a whole as well as individual projects or
programs is a major contributor to business success. According to recent Project
Management Institute Pulse of the Profession report, organizations that are effective in
portfolio management had 76% of projects meet or exceed expected ROI, compared
with 56% of project success without portfolio management process in place. And
success is what we are all about.
By including portfolio management as part of the project management approach, you can
manage projects throughout their lifecycle, and against one another, to achieve benefits far
beyond what you would get by managing projects in silos or in stages. For more on how
portfolio management can give you end to end project management, take a look at our
whitepaper on the 5 pillars of portfolio management.

• What is Portfolio Management?

Portfolio management’s meaning can be explained as the process of managing

individuals’ investments so that they maximise their earnings within a given time
horizon. Furthermore, such practices ensure that the capital invested by individuals is
not exposed to too much market risk.
The entire process is based on the ability to make sound decisions. Typically, such a
decision relates to – achieving a profitable investment mix, allocating assets as per risk
and financial goals and diversifying resources to combat capital erosion.
Primarily, portfolio management serves as a SWOT analysis of different investment
avenues with investors’ goals against their risk appetite. In turn, it helps to generate
substantial earnings and protect such earnings against risks.
 Objectives of Portfolio Management

The primary objective of portfolio management is to invest in securities that will help you
maximise your returns while minimising the risks to achieve those goals.

Capital appreciation: The primary objective of portfolio management is to enjoy

capital appreciation. The principal invested should grow into a corpus at a higher rate
than inflation. It should also minimise risks such as market swings and fund erosion
via taxes. If the investor agrees, reinvesting can be considered to generate more income.

Frequency of income generation: While some investors seek regular income that can
be enjoyed through dividends, others may prefer receiving a larger maturity corpus in
the form of capital appreciation. A portfolio manager should consider these factors
when building one.

Stable return rate: While capital appreciation is the goal, an investment portfolio
should provide you with a steady flow of returns while ensuring the safety of the
investment. At the least, your current return income should meet the opportunity cost
of your funds.

Tax planning: Earning handsome returns but not being able to retain them due to poor
tax planning is disappointing. Different assets are taxed differently. Hence, a portfolio
manager should consider tax policies during asset allocation to help investors plan their
taxes better and not evade them.

Liquidity: Another critical objective of portfolio management is to manage liquidity.

It gives an investor immediate access to funds for an emergency, an expense, an
exciting venture, rebalancing the portfolio, or even participating in a company’s rights
issue. A noteworthy point here is to invest in a well-balanced mix of listed and unlisted
shares because the former has more traceability than the latter.

Safety of investments: Above all else, portfolios constructed should match the
investor’s risk potential. Funds should be allocated so that the investor doesn’t lose
funds they can’t afford. Ultimately, minimising risk is an important aim of portfolio
management.

Marketability: If your portfolio consists of poor-performing or inactive stocks or

funds, you might face difficulty in marketing them or switching from one investment
to another. Hence, investing in companies that are actively traded by other investors
and have higher marketability is crucial.

Diversification: There’s nothing called zero risk. That is to say, no risk, no returns.
Hence, the only way to enjoy maximum returns is by minimising risk, which can be
done through diversification.
Long-term planning: Planning your sunset years in advance can help you carve out
a clear path to achieve your retirement goals. Hence, it is considered that the earlier
you start, the better. A portfolio manager should consider your retirement and long-
term goals while crafting your portfolio.

Types of Portfolio Management

Whether you are an active investor or a passive market participant your

actions and decisions fall under the realm of portfolio management.

In general terms, portfolio management is the science of decision-making about how

to invest your money. The concept includes strategies and policies for matching
investment selection to an individual’s objectives, risk tolerance, and asset allocation
requirements. All portfolio management strategies seek to balance risk against
performance. Whether you’re investing in equities, bonds or some other type of asset,
portfolio management is concerned with determining the strengths and weaknesses of
your investment selection methodology to maximize returns relative your risk appetite.

Although portfolio management strategies vary, they generally fall under four categories;

1. Active
2. Passive
3. Discretionary
4. Non discretionary

Active Portfolio Management

Active portfolio management requires a high level of expertise about the

markets. A fund manager implementing an active strategy primarily aims to
generate better market returns than the market. The strategy is ‘active’ in that it
requires a constant evaluation of the market to buy assets when they are
undervalued and sell them when they exceed the norm. The strategy requires
quantitative analysis of the market, broad diversification, and a sound
understanding of the business cycle.
The biggest benefit of active strategies is the potential for generating market-
beating returns. The strategy also offers flexibility in that the fund manager can
adjust their strategy whenever necessary.
On the opposite side of the spectrum, active strategies have notoriously high fees
due to constant asset turnover. The impact of human error is also much greater
in active strategies.
Active strategies are suited for experienced investors who have a higher risk
appetite. These investors are willing to assume greater risk to generate higher
returns. Typically, their allocation reflects their desire for market-beating returns,
which means a higher concentration of capital allocated to stocks.
 PASSIVE PORTFOLIO MANAGEMENT

Passive portfolio management isn’t concerned with ‘beating the market’ because
its proponents subscribe to the efficient market hypothesis. In other words, they
believe fundamentals will always be reflected in the value of the underlying
asset. Investors who seek to minimize risk often prefer passive strategies. One of
the easiest ways to implement a passive strategy is to invest in an index fund that
tracks the S&P 500 or some other market index.

Lower cost is the primary benefit of passive investing, as this strategy is probably
the cheapest to implement. Passive strategies have also been proven to generate
consistently strong long-term gains.

One of the downsides of passive investing is security concentration. For example,

if you are tracking the S&P 500, you are overly focused on large-cap equity
stocks, which opens you up to risk. Passive strategies are only suitable for long-
term investors, so if you need to get your money out, short-term volatility could
eat into your gains.

DISCRETIONARY PORTFOLIO MANAGEMENT

A discretionary approach to portfolio management gives the fund manager

complete control over their client’s investment decisions. The discretionary
manager makes all the buy and sell decisions on behalf of their clients and utilizes
whatever strategy they think is best. This type of strategy can only be offered by
individuals who have extensive knowledge and experience in investments.
Clients who use discretionary managers feel confident in handing over their
investment decisions to an expert.
The primary advantage of discretionary investing is that you’re handing over all
your investment decisions to an expert. This tends to make life a lot simpler,
especially if you agree with your manager’s buy and sell suggestions.
If you enjoy being more hands on with your investments, discretionary accounts
probably aren’t for you. If cost is also an issue, discretionary accounts might be
more prohibitive since discretionary managers charge higher fees for their
services.

NON DISCRETIONARY PORTFOLIO MANAGEMENT

A non-discretionary portfolio manager is essentially a financial adviser. They will

give you the pros and cons of investing in a particular market or strategy, but won’t
execute it without your permission. This is primary difference between a non-
discretionary approach and a discretionary approach.
The primary benefit of non-discretionary investing is it gives you access to a financial expert
without relinquishing control of your investment decisions.

The primary downside comes from the need to quickly shift a portfolio’s
focus in the face of new market conditions. If your manager has to get your
approval before or selling a particular asset it could cost you.
THE BOTTOM LINE

Portfolio management is a critical component of investing. Each portfolio

management strategy has a unique set of advantages and disadvantages that need to be
weighed before deciding which approach to pursue.

● Who Should Opt for Portfolio Management

The following should consider portfolio management –

● Investors who intend to invest across different investment avenues like

bonds, stocks, funds, commodities, etc. but do not possess enough
knowledge about the entire process.

● Those who have limited knowledge about the investment market.

● Investors who do not know how market forces influence returns on

investment.

● Investors who do not have enough time to track their investments or

rebalance their investment portfolio.

To make the most of the managerial process, individuals must put into practice
strategies that match the investor’s financial plan and prospect.

● Ways of Portfolio Management

Several strategies must be implemented to ensure sound investment portfolio

management so that investors can boost their earnings and lower their risks
significantly.

Typically, professionals use these following ways to manage investment portfolio

1. Asset Allocation

Essentially, it is the process wherein investors put money in both volatile and
non-volatile assets in such a way that helps generate substantial returns at
minimum risk. Financial experts suggest that asset allocation must be aligned as
per investor’s financial goals and risk appetite. Asset allocation means spreading
your investments across various asset classes. Broadly speaking, that means a
mix of stocks, bonds, and cash or money market securities.

Within these three classes there are subclasses:

I. Large-cap stocks: Shares issued by companies with a market capitalization

above $10 billion.
II. Mid-cap stocks: Shares issued by companies with a market capitalization
between $2 billion and $10 billion.
III. Small-cap stocks: Companies with a market capitalization of less than $2
billion. These equities tend to have a higher risk due to their lower liquidity.
IV. International securities: Any security issued by a foreign company and listed
on a foreign exchange.
V. Emerging markets: Securities issued by companies in developing nations.
These investments offer a high potential return and a high risk due to their
potential for country risk and their lower liquidity.
VI. Fixed-income securities: Highly rated corporate or government bonds that
pay the holder a set amount of interest, periodically or at maturity, and return
the principal at the end of the period, these securities are less volatile and less
risky than stocks.
VII. Money market: Investments in short-term debt, typically a year or less.
Treasury bills (T-bills) are the most common money market investment.
VIII. Real estate investment trusts (REITs): Shares in an investor pool of
mortgages or properties.

KEY TAKEAWAYS

Your ideal asset allocation is the mix of investments, from most aggressive to safest,
that will earn the total return over time that you need.

The mix includes stocks, bonds, and cash or money market securities.

The percentage of your portfolio you devote to each depends on your time frame and
your tolerance for risk.

This isn't a one-time decision. Revisit your choices from time to time to see if it is still
meeting your needs and goals.
 2. Diversification
Diversification is a key part of risk management, with the goal to enhance
and preserve your investment portfolio’s value.

For investors, one of the most important considerations is how to manage portfolio risk.

Diversification is the practice of building a portfolio with a variety of investments that

have different expected risks and returns.

The benefit of diversification in your investment portfolio

Diversification can help protect you against events that would affect specific
investments.

As an example, let’s look at industry-specific risk found in energy stocks. If the price
of oil falls, it’s possible that multiple corporations that work in gas and oil may see their
share prices fall. If you’ve invested in industries aside from energy, that decline in value
would likely have less of an impact on your portfolio.

Diversification does not guarantee returns or protect against losses and can help
mitigate some, but not all, risk. For example, systematic risks – which include inflation,
interest rates or geopolitical events – can cause instability in markets and affect the
broader economy and market overall.

7 strategies to diversify your portfolio

I. Determine correlation

It’s important to consider the correlation between the investments in your portfolio.
Even if you own many different investments, if they all trend up or down together, your
portfolio isn’t appropriately diversified. For instance, high-yield bonds often have a
positive correlation with stocks. Therefore, a portfolio made up entirely of high-yield
bonds and stocks is not well diversified.

II. Diversify across asset classes

Investing offers several asset classes to choose from, including:

a) Equity (stocks)
b) Fixed income investments (bonds)
c) Cash and cash equivalents
d) Real assets including property and Equities commodities

These asset classes have varying levels of risk and returns, so including investments
across asset classes will help you create a diversified portfolio. Diversified investment
portfolios generally contain at least two asset classes.
III. Diversity within asset classes

Following are a few ways to diversify within an asset class.

 a) Industry: If you invest in energy stocks, for instance, consider adding tech,
biotech, utility, retail, and other sectors to your portfolio.
b) Fixed income investments (bonds): Look for bonds with different
maturities and from different issuers, including the U.S. government and
corporations.
c) Funds: While some funds track the overall stock market (known as index
funds), other funds focus on specific segments of the stock market. If your
goal is diversification, check what stocks your funds invest in to make sure
you’re not overly exposed to one area or another.

IV. Diversify by location

Asset classes aren’t the only way to diversify. It’s a good idea to consider location and
global exposure.

For example, if you only own U.S. securities, your entire portfolio is subject to U.S.-
specific risk. Foreign stocks and bonds can increase a portfolio’s diversification but
are subject to country-specific risks, such as foreign taxation, currency risks, and risks
associated with political and economic development.

V. Explore alternative investments

If you’re seeking additional diversification, assets such as real estate investment trusts
(REITs) and commodities are potential options.

a) A REIT owns and operates properties, such as office buildings, shopping centers
or apartment buildings. Owning shares in a REIT gives you the chance to receive
a portion of the earnings of those businesses in dividends. Additionally, REITs are
not strongly correlated with stocks or bonds.
b) Commodity investments are investments in physical goods, from gold to natural
gas to wheat and even cattle. You can buy commodities directly or through a
commodity fund.

VI. Rebalance your portfolio regularly

Even the most diversified portfolio needs to be rebalanced. Over time, certain
investments will gain value, while others lose it. Rebalancing is a negotiation between
risk and reward that can help your portfolio stay on track amidst the market highs and
lows.

VII. Consider your risk tolerance

Your tolerance for risk can impact your approach to diversification. Generally, the
longer your timeframe, the more you can weather short-term losses for the potential to
capture long-term gains. There are a few questions that can help you determine your
risk tolerance, and you’ll generally fall into one of three buckets.
a) Aggressive investors generally have time horizons of 30 or more years. With this
flexibility, they have a higher risk tolerance and may allocate 90 percent of their
money to stocks and just 10 percent to bonds.
b) Moderate investors, who have approximately 20 years before they need their
money, generally allocate a lower percentage to stocks than an aggressive investor.
For example, they may have 70 percent of their funds in stock and 30 percent in
bonds.
c) Conservative investors, those who have little risk tolerance or will need their
money in 10 or fewer years, may do a 50/50 balance between stocks and bonds.

Diversification is designed to help your investment portfolio generate more

consistent returns over time. Review your portfolio to determine if it's appropriately
diversified for your financial goals, risk tolerance and time horizon.

3. Rebalancing
What Is Rebalancing?

Rebalancing refers to the process of returning the values of a portfolio's asset

allocations to the levels defined by an investment plan. Those levels are
intended to match an investor's tolerance for risk and desire for reward. Over
time, asset allocations can change as market performance alters the values of
the assets. Rebalancing involves periodically buying or selling the assets in a
portfolio to regain and maintain that original, desired level of asset allocation.
Take a portfolio with an original target asset allocation of 50% stocks and
50% bonds. If the stocks' prices rose during a certain period of time, their
higher value could increase their allocation proportion within the portfolio to,
say, 70%. The investor may then decide to sell some stocks and buy bonds to
realign the percentages back to the original target allocation of 50%-50%.

a) Rebalancing is the act of adjusting a portfolio's changed asset allocation

to match an original allocation defined by an investor's risk and reward
profile.
b) There are several types of strategies for rebalancing, such as calendar,
constant-mix, and portfolio-insurance.
c) Calendar rebalancing is the least costly but is not responsive to market
fluctuations.
d) The constant-mix strategy is responsive but more costly to use than
calendar rebalancing.

e) Costs of rebalancing can include transaction fees, inadvertent exposure to

higher risk, and selling assets as they are increasing in value.

How Rebalancing Works

Portfolio rebalancing aims to protect investors from exposure to undesirable risks
while providing exposure to reward. It can also ensure that a portfolio's exposure
remains within the portfolio manager's area of expertise. There are times when a
stock's price performance can vary more dramatically than that of bonds.
Therefore, a portfolio's percentage of equity-related assets should be assessed as
market conditions change. If the value of equities in a portfolio causes the
allocation in stocks to rise above their preset percentage, a rebalancing may be
in order. That would involve selling some shares of stock to lower the overall
percentage of equities in the portfolio. Investors may also wish to adjust their
overall portfolio risk to meet changing financial needs. For instance, an investor
who needs a greater potential for return might increase the allocation in assets
that involve higher risk, such as equities, to improve that potential. Or, if income
becomes more important than it was before, the allocation of bonds could be
increased. Some investors may mistakenly understand rebalancing to refer to
adjusting for an even distribution of assets. However, a 50%-50% stock and bond
split is not required. A portfolio's target allocation of assets just as easily could
be 70% stocks and 30% bonds, 40% stocks and 60% bonds, or 10% cash, 40%
stocks, and 50% bonds. The allocation depends on the goals and needs of an
investor.

Types of Rebalancing

a) Calendar Rebalancing

Calendar rebalancing is the most rudimentary rebalancing approach. This

strategy involves analyzing and adjusting the investment holdings within the
portfolio at predetermined times. Many long-term investors rebalance once a
year. Other types of investors with different outlooks and goals may rebalance
quarterly, or even monthly. Weekly rebalancing could be overly expensive and
unnecessary. The ideal frequency of rebalancing must be determined based on
an investor's time constraints, threshold for transaction costs, and allowance for
value drift. Advantages of calendar rebalancing over more responsive methods
are that it is less time consuming and costly for the investor since it involves
fewer rebalancing occasions and potentially fewer trades. However, a downside
is that it does not call for rebalancing at other dates even if the market moves
significantly.
b) Constant-Mix Rebalancing

A more responsive approach to rebalancing focuses on the allowable percentage

composition of an asset in a portfolio. This is known as a constant- mix strategy
with bands or corridors. Every asset class, or individual security, is given a target
weight and a corresponding tolerance range. For example, an allocation strategy
might include the requirement to hold 30% in emerging market equities, 30% in
domestic blue chips and 40% in government bonds with a corridor of +/- 5% for
each asset class. Therefore, emerging market and domestic blue chip holdings
can both fluctuate between 25% and 35%. At the same time, 35% to 45% of the
portfolio must be allocated to government bonds. When the weight of any one
holding moves outside of its allowable band, the entire portfolio is rebalanced
to reflect the initial target composition.

c) Constant Proportion Portfolio Insurance

The most intensive rebalancing strategy commonly used is constant proportion

portfolio insurance (CPPI) is a type of portfolio insurance that allows the
investor to set a floor on the dollar value of their portfolio and structure the asset
allocation on it. The asset classes in CPPI are styled as a risky asset, such as
equities or mutual funds, and a conservative asset of either cash, cash
equivalents, or treasury bonds. The percentage allocated to each depends on a
cushion value, defined as the current portfolio value minus some floor value,
and a multiplier coefficient. The greater the multiplier number, the more
aggressive the rebalancing strategy. The outcome of the CPPI strategy is
somewhat similar to that of buying a synthetic call option that does not use
actual option contracts. CPPI is sometimes referred to as a convex strategy.

d) Smart Beta Rebalancing

Smart beta rebalancing is a periodic rebalancing similar to the regular

rebalancing that indexes undergo to adjust to changes in stock value and market
capitalization. Smart beta strategies take a rules-based approach to avoid the
market inefficiencies that creep into index investing due to the reliance on market
capitalization. Smart beta rebalancing uses additional criteria, such as value as
defined by performance measures like book value or return on capital, to allocate
the holdings across a selection of stocks. This rules-based method of portfolio
creation adds a layer of systematic analysis to the investment that simple index
investing lacks. Although smart beta rebalancing is more active than simply
using index investing to mimic the overall market, it is less active than stock
picking. One of the key features of smart beta rebalancing is that emotions are
taken out of the process. Depending on how the rules are set up, an investor may
end up trimming exposure to their top performers and increasing exposure to less
stellar performers. This runs counter to the old adage of letting your winners run,

but the periodic rebalancing realizes the profits regularly rather than trying to
time market sentiment for maximum profit. Smart beta can also be used to
rebalance across asset classes if the proper parameters are set. In this case, the
risk-weighted returns are often used to compare different types of investments
and adjust exposure accordingly.
 Steps Process of Description
portfolio
management
Step 1 Identification For capable investment portfolio
of objectives investor need to identify suitable
objectives which can be either stable
return or capital appreciation.

Step 2 Estimating Expected returns and associated risks

the capital are analysed to take necessary test.
market
Step 3 Decisions To generate earnings at minimal risk,
about asset sound decisions must be made about
allocation the suitable ratio or asset
combination.

Step 4 Formulating Strategies must be developed after

suitable factoring in investment horizon and
portfolio risk exposure.
strategies

Step 5 Selecting The profitability of assets is analysed

of by factoring in their
profitable fundamentals,credibility,liquidity,etc.
investment
and securities
Step 6 Implementing The planned portfolio is put to action
portfolio by investing in profitable investment
avenues.
Step 7 Evaluating A portfolio is evaluated and revised
and revising regularly to evaluate its efficiency.
the portfolio

Step 8 Rebalancing Portfolios composition is rebalanced

the frequently to maximize earnings.
composition
of the
portfolio

● Processes of Portfolio Management

The fact that effective portfolio management allows investors to develop the best
investment plan that matches their income, age and risks taking capability, makes
it so essential. With proficient investment portfolio management, investors can
reduce their risks effectively and avail customised solutions against their
investment-oriented problems. It is, thus, one of the inherent parts of undertaking
any investment venture.

1. Planning

a) Identification of objectives
The first step involved in the process of portfolio management involves
knowing the primary goal which is also called as the objective. For this to
happen understanding the customer’s thoughts, intentions and their needs.

The manager should focus on the customer’s expectation on the desired

outcome plays an indispensable role in this process. After understanding the
customer’s expectation, finding out the constraints it is essential. This step
followed so that the manager can Overcome the problem relating the
constraints.

b) Investment policy statement

After understanding the customer’s expectation and identifying the objectives
that is expected to be accomplished, the investment policy statement is drafted.
The policy statement consists of the following

▪ Client description
▪ Purpose
▪ Review schedule
▪ Constraints
▪ Responsibilities and duties
▪ Objectives
▪ Instruction for adjustment

c) Capital market expectation

The next step after drafting an investment policy statement is to form expectation
about the capital market. After understanding the capital market, there are certain
decisions taken in terms of risk and return.

Understanding the risk and return of various assets is an important factor one
should have in mind while planning. Decisions relating to choices (i.e.) whether
to maximize the returns for a certain level of risk or lower return to stay safe
without any risk.

d) Assest allocation strategy

Strategic asset allocation: –

This strategy of allocation involves combining investment policy statement and
capital market expectation in order to determine the weights of the asset class for
the long run.
Tactical asset allocation: –
Change in circumstances of investors and market creates a short term change in
the portfolio strategy such changes are termed as tactical asset allocation. There
are greater chances for these short term changes to become the new portfolio
strategy if they are updated in the investment policy statement.

2. Execution
● Portfolio selection
In this step the capital market expectation is combined with the Investment
allocation strategy to choose the assets of the investor’s portfolio. A portfolio
optimization technique is used to complete this process.

▪ Portfolio implementation
This step involves implementation of the strategy and it’s considered really
important as they involve transactional costs, thus the implementation should
be properly managed and timed.

3. Feedback
▪ Monitoring
After the implementation of the strategy, it is essential that the portfolio
manager monitors the risk factor and compare them with the strategic asset
allocation. This step ensures that the investment objectives and constraints are
 accomplished. The manager also monitors the investor’s circumstances
economically and the market conditions.

▪ Performance Evaluation
It is essential that the performance should be measured, timely in order to
make sure the objectives are accomplished. The returns are the standards to
measure the performance.

Components of portfolio management

1. Effective diversification

The traditional perspective of diversification inclines to emphasize the asset class. Even
though holding various assets could help to meet diversity, they are futile. They do not
provide any meaningful diversification benefits. Implementation of effective portfolio
management could stabilize your portfolio as well as minimize the overlap between
stocks and bonds. Most of the companies are highly exposed to the performance of the
company and the greatest risk is the level of inflation. During the period of unexpected
inflation equities and fixed income investment may lose the money and having an asset
in the portfolio rising along inflation is a part of effective diversification.

2. Active management

According to research markets are relatively efficient, since most of the information
was priced into the stock already it makes the situation cumbersome as the market or
individual stocks are difficult to predict the short term. According to Nobel Prize
winning research, markets are predictable three to five year period. Another perspective
to this scenario is a market that looks expensive in the present will perform badly
compared to market that are cheaper today vice versa. Analysis of global market would
help the investor to avoid economic bubbles and make the best out of the available
growth opportunities. The research emphasizes on patience, but this would not be the
case all the time.

3. Cost Efficiency

An individual can himself manage an investment. The question of worth arises in the
case of investment management done by a manager. This process includes process
such as advisory fees and custodial fees, investment expense ratio and transaction
cost. If your fees cost more than 3% every year than it is a lot of money. Advisors aim
at adding value to the portfolio by developing a diversified portfolio, monitoring
markets to avoid economic bubble, seize opportunities, minimizing the hidden cost
embedded in the product. To recapitulate it is important that the service provides a
positive return by tackling the market risk.
4. Tax efficiency

The level of success can be measured by the amount of money you retain at the
end and that’s when the concept of tax efficiency came into existence. There are
various methods to attain tax efficiency, One way is to use tax advantage vehicles
and other one is asset location strategies to minimize tax by determining which asset
type could use the best tax advantage.

Importance of Portfolio Management

1. Allocation of funds
A good portfolio management aims at allocating the funds in the most
profitable way by considering factors such as market returns , risk appetite
etc.

2. Reduces risk
Portfolio management ensures that the risk factor is reduced by adjusting the
The risk that an individual is taking on a specific percentage of the capital.

3. Diversification
Diversification is nothing but allocating the funds in various financial
instruments, the objective here is to one asset is protected against the risk.

4. Tax planning
Portfolio management is helpful to a great extent in terms of tax planning
Because having a portfolio of investments helps to reduce the tax burden.
Tax planning can be done as a part of portfolio management. Investing in
financial instruments such as PPF & PF etc. Are brilliant way of saving tax.

5. Managing adverse conditions

A good portfolio management includes investment made in
Liquid instruments and also cash balances. During times of adverse condition
they can withdraw funds from assets with poor performance and invest them
in a suitable financial instrument that gives a better return.

Who is a Portfolio Manager?

A portfolio manager is a person who manages the portfolio of a person or group.

Moreover, they are also responsible for the managing the portfolio on a daily
basis. The portfolio management plays an active or a passive role in terms of
management of portfolios. They are the people responsible for formulation of the
plans and they should possess excellent research skills.

Roles of portfolio manager ?

1. Investment decisions
A portfolio manager ensures that clients make the best decisions regarding their
investment. For this purpose, the portfolio manager is expected to understand the
client’s profile. The client profile involves knowing about the customer’s age
category, income level and risk appetite. Uncertain situations arise at any point
in one’s life, keeping aside a sum for investment would be the best option and
that action could be carried out with the help of portfolio management. The
Portfolio Manager will also provide investment advice to his clients.

2. Investment tools
The prime responsibility of the portfolio manager is to ensure that the clients are
aware of the several investment tools that are available in the market. The
manager should further take another step and explain the benefits and drawbacks
of those tools and assess them for risk and returns.

The manager should also consider the financial position of the client while
carrying out the duty. After analysis of the option, the manager should give the
client the option that is suitable.

3. Customization of plan
Portfolio management requires a clear understanding of the customer’s needs
and his problem. The conundrum in such a field begins with understanding the
client’s dynamics. Since every client’s needs and different, it is not easy to
carry out such a duty.

Thus, the portfolio manager’s key role is to understand and plan a customized
strategy. This consists of factors like risk, return and market conditions. The
plan should consider the financial stability and risk appetite of the customers.

4. Unbiased service and professionalism

A portfolio manager should treat all his clients equally and prioritize the
needs of the clients. He should ensure that client’s needs and expectations
are satisfied with his/her service. In simple words, he/she should put the
satisfaction first rather than escaping the resoinsibility. Moreover, his
relationship with the client has to be highly professional. It should ensure
that the client’s financial details and information are safe and secure
 5. Decision making & communication
A portfolio manager is expected to make a quick and prompt decision. For
instance, after making an investment decision the customer expects high asset
performance. There is always a probability factor that is tied up with the
investment performance.

Let’s consider an investment is not performing well due to market condition.

Then, the manager should step in and make decisions relating to asset withdrawal
and asset reinvestment. Communication is essential for the relationship that the
client and the manager have. It helps to understand the perspective of the client.
The manager should ensure that he updates the client about the performance of
the asset.

6. Tracking performance

Tracking the performance of the asset is another vital role of the portfolio
manager. After understanding the client’s status and guiding them to invest in
certain assets the manager should make sure that assets are performing according
to the standards.

The manager generally uses an optimization tool to evaluate the performance of

the asset. In case if the assets do not perform well, it is the duty of the manager
to communicate them to the client and suggest ideas for reinvestment. The
Portfolio manager performs frequent portfolio analysis to track the performance
of his investments.

7. Other responsibilities

The manager should explain all the financial information to the client. The client
trusts the portfolio manager and hands over the money to invest. Hence, the
investor should receive every update about the investment and its performance.

Groww - Company Highlights

Startup Name Groww

Owner Nextbillion Technology

Headquarters Bangalore, Karnataka, India

Industry Financial technology,

Investment, Mutual Funds
 Founders Lalit Keshre (CEO), Harsh
Jain, Neeraj Singh and Ishan
Bansal
Founded April 2016
Valuation $5 billion (FY22)
Revenue RS 350 Crore (FY22)
Website www.groww.com

Groww - Name, Logo and Tagline

The Groww logo consists of a circle of two colours: Green and Blue.
The logo depicts an increasing graph.

'There's just one right way,' says the company's tagline. The main goal of the
company is to make the investing process as simple as possible for their clients.
Investors can choose from a variety of mutual funds, and they can also invest in
a variety of schemes with varying market capitalizations.

Who Owns Groww : Founders, Promoters, Investors, and Other Details

In 2016, four Flipkart employees – Lalit Keshre, Harsh Jain, Ishan Bansal and
Neeraj Singh, quit their jobs to start a venture that could make investing easy.
They called this venture Groww and started operations In 2017. Here is all you
need to know about the founders, the history of Groww and investors backing its
vision.

GROWWFOUNDERS
Lalit Keshre- Co-founder & CEO

Lalit is the CEO of Groww. Lalit looks after all the aspects of the business,
predominantly the product and customer experience at Groww. Before starting Groww,
Lalit was in a senior product management role at Flipkart, where he launched and led
Flipkart Quick and helped launch Flipkart Marketplace. Earlier, Lalit founded an online
learning company called Eduflix, and he has also been an early team member at Ittiam
Systems.

Lalit is an alumnus of IIT Bombay.

Harsh Jain-Co-founder & COO

Harsh Jain heads Growth and Business at Groww. Before Groww, Harsh was part of
the product management team at Flipkart. Previously, Harsh had co-founded a story-
telling start-up. Harsh holds a B-Tech in Electrical Engineering and a Masters in
Information and Communication Engineering from IIT Delhi. He studied for his MBA
in product management and marketing from UCLA School of Management.
Neeraj Singh – Co-founder & CTO
Neeraj heads product development and customer research at Groww. A passionate
engineer, solution developer, and coder, Neeraj was with Flipkart as an engineering
manager and has built the Flipkart customer returns and refund system before starting
Groww. Neeraj holds a BE degree in Information Technology from ITM, Gwalior and
a PG Diploma in Advanced Computing from CDAC.
 Ishan Bansal – Co-founder and CFO

Ishan heads Finance at Groww. Earlier, Ishan worked at Flipkart in the corporate
development domain. He has also handled corporate development and M&A at
Naspers. Ishan graduated from BITS Pilani, holds an MBA in Finance from XLRI,
Jamshedpur and is a CFA charter holder.

About Groww and How it Works?

Groww is a web-based investment platform that allows users to invest in mutual funds
and equities directly. The company is a creator of a mutual fund direct access platform.
Groww's technology is aimed to make investing simple, accessible, transparent, and
fully paperless, allowing customers to invest in mutual funds without any difficulties.

Groww users can invest in mutual funds through SIPs and equity-linked savings.
According to the company, it has over 20 million registered users, the majority of them
are under the age of 40 and prefer to use their phones. It offers over 5,000 mutual funds
that can be invested directly through its website and app, which is available on iOS,
Android.

It features a straightforward pricing structure that includes cheap trading fees. You can
invest in a mutual fund for free with no hidden fees. Groww does not charge an account

opening fee or a monthly maintenance cost. Moreover, with Groww's direct mutual fund
plan, you can also earn an additional 1.5%.
Groww offers E-books, Resources, and Blogs that provide stock market essentials and
updates to assist investors to make better decisions. One can open a paperless account
immediately very easily. If you want to participate in the primary market, you can
submit an online IPO application. A Brokerage Calculator is included in the software.

Groww’s History
Based on their own experience and that of their friends and acquaintances, the founders
felt that the process of investing in financial products in India is too complex and
opaque. There are close to 200 million people with investable income in India, while
only 20 million actively invest.

The only way to bring the next 180 million on board is by making investing simple.
Groww aimed to provide the necessary information, resources and user experience for
people to start investing in the simplest way possible.

Initially, the founding team took a lot of time to understand the market and identify the
users’ fundamental pain points. They also had to do a lot of experiments to figure out
the right user experience. Also, because the user’s hard-earned money was at stake,
they had to ship a safe and secure product, and that took them some time to build.

In 2017, Groww started as a direct mutual fund distribution platform and within a year
became one of the most popular mutual fund investment platforms in the country.

Following user demand, Groww added stocks in the early half of 2020 and the same
year launched digital gold, ETFs, Intraday trading, IPOs in quick succession. Today,
more than 1.5 crore users across 900+ cities across India trust Groww for their
investment needs.
Groww Funding Details
Some of the most respected investors in the fintech space have backed Groww’s vision of
democratising investing in India.

In May 2022, Groww has raised $30 mn (220 Cr) in Series C, led by YC Continuity.
The round also saw participation from existing investors Sequoia India, Ribbit Capital
and Propel Ventures.
In October 2021, Groww raised Series E funding of $251 million at a valuation of $3
billion. This investment was led by ICONIQ Growth along with other investors
including Alkeon, Lone Pine Capital, and Steadfast. Groww’s existing investors too
participated in this round, including Sequoia Capital India, Ribbit Capital, YC
Continuity, Tiger Global and Propel Venture Partners.

In April 2021, Groww raised $83m in the Series D round. Tiger Global Management
led the fundraising with the participation of Groww’s existing investors – Sequoia
Capital India, Ribbit Capital, YC Continuity and Propel Venture Partners.

In September 2020, Groww raised $30m in Series C, led by YC Continuity. The round
also saw participation from existing investors Sequoia India, Ribbit Capital and Propel
Ventures.

In September 2019, Groww raised $21.4m in Series B funding round from US-based
VC firm Ribbit Capital. The round also saw participation from existing investors
Sequoia India and Y Combinator.

In January 2019, Groww raised $6.2mn in a Series A funding round led by Sequoia
India. American seed accelerator Y Combinator, Propel Venture Partners and Kauffman
Fellows also participated in the investment round. The company had earlier raised $1.2
million in Pre-Series A led by Insignia Venture Partners, America’s Lightbridge
Partners and Kairos fund. Groww had raised seed funding from CureFit founders
Mukesh Bansal and Ankit Nagori along with Y Combinator in January 2018.

Groww charges a tiny fee, however, it is paid by the mutual fund firm, not by the client. They
profit on the funds they sell, but it's a complicated process.

To begin, there are two types of mutual fund investments: regular and direct. In ordinary
mode, a distributor appears, and you must pay the distributor a commission. The
commission is calculated in such a way that it compensates you for your investment
and profits.

Apps like Groww, on the other hand, give consumers a direct investing opportunity by
combining different funds and companies into a single platform, thereby extending
them a wide range of possibilities.
For a fintech company like Groww, the first thing to keep in mind is to expand the
customer base. Groww leverages technology to reach the proper target audience, which
lowers its operating costs. People rarely switch between these types of applications. As
a result, once the correct customer base has been established, they are likely to stick
with you for the long haul.

Groww allows users to invest in mutual funds and equities from anywhere in the world,
thanks to its high level of technology. With just a few mouse clicks, you can become
an owner of a specific stock or mutual fund.

Groww is one of many that has greatly interested the investors. The
company's earnings increased by 4.7 times to a little over INR 1 crore in FY20,
up from INR 20.14 lakhs in FY19. Operating revenue increased by 3.25 times to
INR 52.05 lakhs, with financial assets contributing an additional INR 48.24
lakhs.

The company has further seen an increase in its operational revenues in FY21,
which were recorded at INR 52.71 crores in consolidated operating revenues.
The brokerage and allied services that the company provides brought it around
INR 34.3 crore in revenues, which was followed by income from its tech
platform charges and other operational revenue, which helped the company gain
Rs 12.7

crore and INR 5.71 crore in revenues. The expenditure of the company also grew
parallelly, making the total expenditure of the company climb to INR 155.66
crore. Looking at the company's financials on a unit level reveals that Groww
has managed to earn Re 1 of operating revenue by spending INR 2.95 during
FY21.

The Y Combinator-backed business has witnessed a respectable increase in

earnings, but it still trails companies like Zerodha and Upstox, which have
earnings of INR 1,094 crore and INR 148 crore, respectively. Groww made INR
1 crore while ET Money made INR 2.24 crore in total in FY20.

Groww is expanding fast and has also achieved unicorn status in April 2021. The
company closed an $83 million worth of its Series D funding round led by Tiger
Global Management, which helped it turn into a unicorn startup.
 Groww – Acquisitions

To date, Groww has acquired only one other mutual fund business, which is
Indiabulls AMC. Groww acquired Indiabulls Mutual Fund for INR 175 crore,
which includes cash equivalents of INR 100 crore. Groww will be one of the first
fintech firms to join the 37 trillion dollar asset management market as a result of
this purchase.

SWOT Analysis of Groww

A SWOT analysis determines the strengths, weaknesses, opportunities, and

threats of an employer. It is a confirmed control paradigm that permits Groww
to benchmark its enterprise and overall performance towards that of its
competition and the enterprise as a whole.

This is a tremendous device for figuring out in which the enterprise is doing well,
in which it’s miles failing, growing countermeasures, and figuring out how the
enterprise can grow.

● Strengths of Groww

▪ Low-cost Trading: Financial services are supplied remotely via the internet.
The organization keeps operational costs low by using an online business

model. It offers free direct investments in mutual funds, stocks, initial public
offerings, digital gold, and exchange-traded funds.
▪ Big Fundings & Support: Big companies like Insignia Ventures Partners,
Lightbridge Partners, Kairos and others have invested in Groww, making it a
safe and reputable online investment platform.
▪ Advance Technology: Investors with web/desktop, Android, and iOS software
systems can use Groww’s HTML-based trading solutions. The corporation
has made major technological investments. It offers its consumers an
outstanding trading platform and tools.
▪ Reducing Costs: Groww likewise feels that word-of-mouth referrals are the
most effective approach to expand its business. As a result, unwanted
marketing costs are avoided. Instead, it assumes that happy consumers will
naturally refer to their friends. That is why Groww places a higher value on
technology and customer service.
▪ Marketing Strategy: Groww started its operations through a WhatsApp group
and other social media platforms engaging with members on topics relating
to investing and wealth management.
 ● Weaknesses of Groww

▪ Few Employees: The number of employees in the company is very low. As the
company is getting bigger day by day it is not possible to handle with fewer
employees.
▪ Limited Services: Groww has fallen short of delivering several services or
features that its competitors provide. Some of these include making IPO and
FPO investments; moreover, it does not provide API access for automated
trading.
▪ Research & Development: Because the company did not spend wisely on
research and development, demand forecasting gaps and opportunities were
overlooked.
▪ Lack of Knowledge: There are still people who are unaware of trading in
various sections of the country. It does not provide stock recommendations
or ideas, which could make a beginner trader’s experience more difficult.
▪ Customer Service: Because the platform is entirely online, there is no personal
relationship manager and no research advisory service. It also does not
provide a 24/7 customer support service.

● Competition: Mutual funds and stocks trading is a competitive market. Firms are
up against fierce rivalry, which is inherent in every business. Groww must focus
on overcoming the strain of competition and standing out from the crowd.
● Opportunities for Groww

▪ Increased Customer Base: Groww has attracted many investors, and with
increased exposure, there are impending opportunities for client base
expansion.
▪ Market Research: By thoroughly researching market circumstances, the
company may take advantage of the opportunity to provide customized
mutual funds and brokerage services while also improving the existing
investor experience.
▪ Awareness: With shifting educational reforms and government regulations
aimed at educating investors and raising trading awareness among the general
public, there is a growing opportunity for mutual funds and stock brokerage
firms.
▪ Bullish Markets: Because every investor is drawn to bullish markets, they
provide a good opportunity for firms.
● Digital Gold: The company offers a new plan of investing in digital gold. As
all the other companies will be focusing on hand-gold, this company is
focusing on this type of investment which is going to be fruitful in future.
● Online IPO: Groww offers an online IPO application that can be filled and
sent to the company. The company can launch an IPO that will display on the
website and people can apply online.

Threats to Groww
▪ Government Policies: Government policies change regularly in different
countries. Furthermore, political upheaval in the country might disrupt
trading cycles and negatively affect stock markets.
▪ Online Substitutes: Because firms can enter and quit an industry with few
limitations, the number of substitutes in the same product line at different
prices poses a risk of losing the investor base.
▪ Digital Frauds: With the advancement of the digital era, there has been an
increase in the number of occurrences of cybercrime. Because the firm’s
operations are conducted entirely online, there is a greater risk of fraud and
the loss of the personal information of investors.
▪ Foreign Firms: Foreign companies tend to attract local investors, putting
pressure on Indian companies to lose market share.
▪ Bearish Market: The inherent nature of stock markets poses the greatest
danger to stockbroker companies like Groww. Bearish market conditions
pose a significant risk because no investor wants to trade in such
circumstances.
This ends our complete SWOT analysis of Groww. Let us conclude our learning below.

To Conclude
Groww is a well known online investment trader that provides lots of products
for investors to invest in. In the SWOT Analysis of Groww, it is observed that
the company has a lot of investors to invest in it and also a well-recognised brand
in the online investment category for its free and low cost on opening the
accounts and investing.

As a developed company it is common to face debts and lots of competitors in

the market but some actions have to be taken for the company to maintain its
standard.

As most people are moving to online investments and lots of competitors are
emerging in the industry it is very important to have a proper marketing strategy
for the company to pull the customers to invest in its company.

GROWW PRODUCTS AND SERVICES

Groww offers online trading & investing in shares, equity F&O, direct mutual
funds, IPO, digital gold, SGB, FD, and US Stocks. It is a CDSL depository
participant to offer Groww Demat account to keep shares and mutual funds.
Groww offers free Demat and Trading accounts at zero account opening fee and
AMC charges. Customers can trade on the Groww mobile app and website.
Groww charges a lower of Rs. 20 or 0.05% brokerage on equity intraday and
delivery trading and flat Rs. 20 per order brokerage on all, F&O trades. It charges
zero brokerage on investment in direct mutual funds.
Groww also provides stock market learning educational content and courses on
the Groww Academy and publishes informative blogs on the Groww Digest
platform.

1. Groww Demat Account

Groww is a DP with CDSL to offer an online Demat account opening service to

customers. The Demat account by Groww safeguards stocks, mutual funds,
IPO,

ETF, etc. in an electronic format. You can open a free Groww Demat Account at
zero charges through the Groww

2. Groww Trading Account

Groww Trading account provides access to various investment products
including stocks + mutual funds + Gold + ETF + US Stocks + IPO. The trading
account provides seamless, fully transparent, and online trading across all these
products. A trader can log in to their account on the Groww web or Groww app
and start online trading and investment in various products.

3. Groww Stock Trading

In June 2020, Groww has launched stock trading and enabled customers to buy
and sell shares listed on the BSE and NSE. Groww charges a flat brokerage of
Rs. 20 per order or 0.05% whichever is lower on equity intraday and delivery
trading. Unlike Zerodha and Upstox, Groww does not offer free delivery trading

4. Groww Derivative Trading

Groww platform allows customers to trade in equity futures & options segments
in just one click. You can access Index and Stock futures & options contracts,
and access different charts & indicators to trade in the derivatives segment.
Groww charts fixed Rs. 20 per order brokerage on all F&O trades irrespective of
the trade value

5. Groww Mutual Fund Investment

Groww is the best direct mutual fund investment platform because the broker
provides 5000+ direct mutual funds from 35 top fund houses. Mutual fund
investment with Groww is completely free without any brokerage, commission,
subscription fee, or transaction charges. Customers can also track external
mutual fund investment on the Groww app and switch regular funds to direct
funds for Free.
 6. Groww IPO Investment
After the introduction of stocks trading, now, Groww has started offering IPO
investment. Groww users can apply for IPO through the Groww app or web-
based platform. The broker allows Free IPO investment through UPI on the
Groww app or website. However, non-UPI users can apply for an IPO through
their net banking or ASBA process using Groww Demat Account. You can even
pre-apply for IPO before the IPO opening date and once the IPO opens the order
will be sent to exchange.

7. Groww Digital Gold

Groww facilitates clients to buy and sell digital gold through their Groww
Trading Account. Digital gold purchased can be sold after a 2-days holding
period from the date of purchase. Besides investing in digital gold, customers
have also the choice to invest in Gold ETFs and Gold mutual funds.

8. Groww ETF
ETF stands for Exchange Traded Fund that invests in the companies listed on the
respective benchmark. For instance, a Sensex ETF will invest in all the
companies that are listed on the Sensex whereas a Nifty ETF will invest in Nifty
listed companies. Groww account holders can buy and sell ETFs through the
Groww app and Groww web

9. Groww US Stocks
Groww has started inviting people to unlock US-based stocks and start investing
in the US market. People with overseas Trading Accounts will be now able to
invest in stocks like Alphabet Inc, Amazon Inc, Microsoft, Apple, Starbucks,
Netflix, etc. All you need to do is open a Groww US Stock account and it will
get activated within 24 hours. If you do not have a Groww account then first you
must have to activate an Indian stock account and then only you can activate US
Stock account.
Groww offers first USD withdrawal free of cost and subsequent withdrawals are
charged at USD 9 per withdrawal.

10. Groww FD
Groww platform offers FDs (Fixed deposit) of multiple banks to offer a safe
investment product for conservative investors. Investment in Groww FD will be
the best option for risk-averse investors who don’t want to take high risks.

11. Groww Academy

In Dec 2021, Groww has launched the Groww Academy platform to provide all
the course content of financial services to cater to beginner to advanced level of
traders. Groww Academy is a free stock market learning platform with a number
of course series i.e. stock market basics, All About IPOs, corporate actions and
impact, stock selection & analysis, and economy and its impact on stock prices.
The Academy course content is available in English & Hindi languages with
videos.

12. Groww Digest

Groww Digest is an educational initiative by groww to provide the latest news
and market updates to users. The discount broker provides daily market updates
about Sensex and Nifty, Top gainers & losers, companies' financial results, etc.

13. Groww SGB

Groww provides sovereign gold bonds on the Groww app and website. These are
unique investment product that is issued by RBI that provides a fixed interest
return and gold price appreciation as well.

14. Groww Calculators

Groww provides a number of calculators or online tools on its platform to assist
customers in different ways. Various calculators offered by Groww are listed here
as under:

▪ SIP calculator
▪ Lumpsum calculator
▪ SWP calculator
▪ MF Returns calculator
▪ Income tax calculator
▪ Sukanya Samriddhi Yojana calculator
▪ PPF calculator
▪ EPF calculator
▪ FD calculator
▪ RD calculator

How to Monitor Your Stock Portfolio Through Groww ?

Investing is about choosing fundamentally strong stocks and giving them enough
time to generate wealth. Traditionally, the buy and hold methodology worked
like a charm since most investors were blissfully unaware of the developments
in the economy or the minor changes in the companies that they were invested
in.

And so, if they had invested in good-quality stocks, then over the long-term, they
managed to earn generous returns. However, the world has changed since and
the internet has made ignorance obsolete.

Today, if you want to succeed as a stock investor, then monitoring your stock
portfolio is as important as choosing the right stocks. This is more than installing
the best stock portfolio tracker and analyzing the output.
But how exactly do you monitor your stock portfolio? Is it just tracking stock
price movements? Or are there more angles to it? Let’s look at a more hands-on
approach to monitoring your stock portfolio.

What Does Monitoring Your Stock Portfolio Entail

First things first, many investors assume that monitoring the portfolio means
tracking the profits and/or the stock price movement. While this is a part of the
overall monitoring process, there is much more to it than merely the current
market price.

As a long-term stock investor, you should focus on the fundamental aspects of

the company, its financial performance, and its operational and managerial
strength.

We live in a world where a single social media post can make or break a company.
Hence, the traditional buy and hold strategy where you invested and forgot about
it for 5-10 years cannot apply now.

You need to be constantly updated about how the company is performing, its
credit rating, and any specific developments that can influence investor or buyer
sentiment.

Also, scams and defaults! Satyam Computers (India), Enron (USA), etc. are
testaments to the fact that some management teams will try to achieve success at
the cost of the shareholders. Needless to say, monitoring stocks is a must.

Before I share some tips to help you monitor your equity portfolio, I would like
to mention that you should try to avoid tracking the market price of stocks
regularly by using a portfolio tracker or calculating your gains at the end of every
trading day.

This is usually a counterproductive strategy since constant tracking of stock

prices can induce an emotional reaction deviating you from your long-term
investment plan. This can also induce an urge to time the market to make quick
profits.

How to Monitor Your Stock Portfolio?

The core idea behind monitoring stocks efficiently is keeping track of the
company’s performance as opposed to the stock price movements. Here are some
tips that can help answer the question – how to monitor your stock portfolio:
1. Keep Yourself Updated About the Latest News About the Company
There are many factors that influence the performance of a company in specific,
and industry as a whole. These can be political, social, economic, or other
macroeconomic events that can affect the performance of the company. Hence,
it is important to keep yourself abreast of all the latest news and events that can
affect the company. Also, ensure that you keep yourself updated about any
announcements made by the company

All companies in India release their financial results every quarter. Usually,
companies release them within 45 days after the end of the financial quarter.
Ensure that you analyze these results carefully and understand the financial
performance of the company.

There can be losses in a specific quarter and profits in the next. However, you
must ensure that you try to understand the bigger picture and look at the potential
of the company too.

Also, it is important to consider the overall economic scenario while assessing a

company’s financial performance. If you find that the company is regularly
declaring below-par results, then you might want to investigate the reasons
behind it and make appropriate decisions.

3. Keep Tabs on Any Corporate Announcements

All companies are mandatorily required to inform the stock exchange about any
event that can impact the market price of its shares. This can be a huge list of
events like launching a new manufacturing facility, mergers or acquisitions,
change in the senior management, buying or selling shares by the promoters, etc.

The stock exchange updates all such announcements on its website. It is

important for investors to be aware of all such corporate announcements as they
would offer a clearer picture of the direction in which the company is headed and
make informed decisions to buy more stocks or sell the existing ones.

4. Be Aware of Any Changes in the Shareholding Pattern

Companies are also required to declare their shareholding pattern once every
quarter. Typically, companies do it after every calendar quarter and update the
information on their website.

As an investor, you must ensure that you look at this aspect carefully and
compare it with the shareholding pattern over the earlier quarters. It will allow
you to understand if the promoters are increasing their stake or pulling out.
This is an important aspect since a promoter increasing the stakes in the company
usually implies a good potential for growth since the promoter (who has inside
information of the company) is increasing his exposure.

This also implies that if promoters are steadily withdrawing from the company,
then you need all antennas up and try to understand if there are any potential
roadblocks that the company can face.

5. Check the Credit Rating of The Company

Like individuals, companies have a credit rating too. Rating agencies like
CRISIL, ICRA, CARE, etc. review the financial condition of companies and rate
them once a year.

These ratings are published on the websites of these agencies along with a
document detailing the pluses and minuses of the company with respect to credit.
Needless to say, a company with a poor credit rating is a negative sign since it
implies that the management cannot manage its debts efficiently and can put the
company into jeopardy in the future.

6. Track the Stock Price

Although this is not a recommended method of monitoring your stock portfolio,
if you don’t have the time to monitor your stocks regularly, then you can look for
a share portfolio tracker that allows you to monitor the share price every day. For
instance, Groww has a centralised dashboard where you can track the price
movements of your stocks in real-time.

However, you need to ensure that this is for monitoring purposes only and must
keep emotions at bay so that you don’t make any emotion-driven decisions.
Monitoring prices is like a post-facto method where you will know about the
price drop/surge before you know the reasons behind it. Hence, it can help you
gain an understanding of the company.

7. Assess the Promoter’s Pledge of Shares

Along with the shareholding pattern, companies also declare details about the
pledge of promoter’s shares every quarter. As an investor, you must look at the
pledge amount carefully as it is usually one of the first signs of financial trouble
in the company.

In the event that the promoter cannot repay the loan, the lenders will sell the
shares in the market causing a negative ripple effect on the share price. Hence,
you need to think twice before investing in a company where promoters have
pledged their shares.
 Summing Up

There are numerous ways to monitor stocks apart from the ones listed above. Some
investors attend Annual General Meetings (AGMs) held by the companies that they are
invested in or visit the company’s premises for a better understanding of the way it
functions.

There can be different ways of approaching this but the key lies in ensuring that you
know where your money is invested and stay updated at all times. Remember, merely
using a stock portfolio tracker is not enough! To be a successful stock investor, you
must ensure that you monitor your stock portfolio comprehensively and regularly.

How to Track Your External Investments on Groww

Consider a scenario, you are a novice investor who started a SIP of a certain
amount in a mutual fund for the first time. A couple of years later, a friend
recommended a well-performing mutual fund to you and you invest a portion
there as well.

Few years down the line, more short term or long term goals come into the picture
and you invest in some more schemes. Ultimately you may reach a stage where

you have several ongoing investments, varying in investment amounts and time
periods, but you have lost track of them.

If you are someone facing a similar situation, Groww’s tracking feature will make
your life super easy, but first, let us see why you need to have all your investment
information in one place.

How Can I Track My External Investments On Groww?

Groww presents two options to enable tracking external investments on the

platform.

Auto tracking
Manual tracking
Let’s explore both options one by one.
 1. Auto-Tracking
The process is simple. Once you enable auto-tracking at Groww , Groww takes
your request to CAMS/Karvy and places a request for your CAS or consolidated
account statement. The consolidated account statement generated shows all your
mutual fund investments against your PAN. By enabling auto-tracking you give
permission to Groww to read your CAS, pick all your investments and collate
them on your dashboard. To activate the feature, follow the steps below.

Step 1 : Login to your Groww account. Sign up if you haven’t made an account
yet ( It’s super easy!)
Step 2 ; On the MF explore page under Quick Access you would be able to find the
‘Import Funds’ tab. Click on it. On the home screen itself you will find two places
where you will find the ‘Import Funds’ option.
Step 3 : Click on ‘connect with Google‘ option for auto-track’.
Step 4 : Select the email ID linked to your external investments or add a new one.

Step 5 : In this step, Groww will generate your Consolidated Account Statement by
re-directing you to CAMS. Your password would be your PAN. Once you are on the
CAMS page, you would be able to see all pre-filled fields. All you have to do is click
on ‘Submit’ without altering the details.
If the details are not already auto-filled for you, here is a list of instructions that you need
to fill on the CAMS/Karvy website:

1. Statement Type: “Detailed”

2. Period: “Specific Period” from 01-Jan-1990 to Present Date

3. Folio Listing: “With Zero Balance Folio”

4. Email-id is the one that is linked with your investments

5. Password: Your PAN Number in CAPS
You will receive a success message once your request has been placed with CAMS and
you will be redirected to Groww.
You will also receive a confirmation message from Groww. Groww will scan you CAS
and import all your funds that you would be able to see on your investment dashboard.
This might take 1-2 working days.
Step 6: In the next step, choose the email ID you want to view all the tracking details.

After this step, you will be able to see a screen confirming the number of funds
and the cumulative amount which was tracked.
 2. Manual Tracking

If you don’t want to give access to Groww to track your external investments
automatically, or do not have a Gmail account, you can choose manual tracking.
The first few steps are the same.

Step 1: Login to your Groww account, click on ‘Import Funds’ under the quick
access tab present on the MF explore page.
Step 2 : Click on ‘ Import by manually tracking’. Enter the email ID linked to
your external investments to initiate tracking and click on ‘Request Statement’.

Now open the email that you have received and forward it to ‘[email protected]’.
Go back on the Groww App and then tap on ‘Forwarded’ after you have
forwarded the correct email to [email protected].
You would be able to see all your external funds consolidated at one place. The
changes will be reflected on your dashboard within 1-2 working days.

If you have invested in regular mutual funds and wish to switch to direct, you
can do so too by scrolling down and clicking on the“ Switch To Direct “ button.

So just by a single app you can enable complete management of your portfolio
and handle your investments efficiently. You will also be able to invest, redeem,
switch to direct and create SIP along with portfolio analysis of the tracked funds
on the same platform.

How Can Groww Help You?

To ease investing woes such as yours, Groww has launched a feature where you
can track all your external investments in one place.

The track feature solves 3 major pain points that investors may face while
managing their investments. Let’s see what they are and how the app features
resolve them.
 1. Investment Management

With multiple investments made over the years you tend to lose count of the
total amount that you have invested in MF schemes as well as what amount goes
in which fund. For instance, you may have 5 ongoing SIPs from different
platforms and tracking them can be cumbersome.

Undoubtedly, it is tedious to remember the login credentials of each website and

then individually go and check the performance of the fund. Many a times, you
may have had doubts about your investment’s performance but couldn’t get your
query resolved due to less than satisfactory customer service from the fund
house.

Not only is this inconvenient and time consuming, but also doesn’t allow you to
take decisions regarding your overall portfolio. Since the track feature aggregates
all your external investments, you get a bird’s eye view of your portfolio on a
single dashboard. In short, Groww’s track feature :

▪ Collates all your investments in one place where you can see details like the
invested amount and the current value of your investments along with the
expenses associated with the fund.
▪ The dashboard gets updated daily so you can see the current NAV status of your
funds
▪ You can invest more in these funds ( irrespective of whether they are direct of
regular)
▪ You can redeem funds from the dashboard too!

2. Overview of Fund Performance.

Once you are aware of how your investments are distributed across schemes, it
is also vital to understand the current performance of your investments. In
absence of such a feature, investors find it difficult to track the performance of
individual funds. With the track feature you can see the change in value of
individual funds and also gauge the overall performance of your portfolio in
terms of net returns you are achieving.

The feature not only consolidates your investments and shows overall returns on
your portfolio, but also gives insights regarding how your capital is allocated
across debt and equity. It further drills down to allocation details between large
cap , mid cap, and small cap. It also tells you sector wise asset allocation details.
This information can help you make decisions regarding rebalancing your
portfolio if need be.
 ● Why is it Important to Track all Investments in One Place?

Selecting a mutual fund and then investing in it is only half the job done. It is
important to know whether the fund you have invested in is on the track to
achieve your investment objectives. Tracking involves checking how the fund
has been performing against the benchmark as well as other funds in the same
category over a monthly, quarterly or yearly basis.

If you are able to see all your ongoing mutual fund investments in one place, you
would be able to check individual performances of the funds as well as the
collective performance of your portfolio.
Accordingly, you will be able to take a call on portfolio rebalance; whether you
should continue investing in the funds or switch to a better performing fund, to
get maximum return on investment.

CHAPTER-2 LITERATURE REVIEW

The Economic Times(2021): Groww is one of the fastest growing investment

platform in India with its users base increasing by 400% in just one year.

Moneycontrol(2021): Groww is the most preferred investment app among

Indian millennials, with 52% of respondent choosing it as their favourite app.

Prinyanka Saini & Prachi Jain: in 2021 it is analysed that user experience of
the Groww app and found that it was highly rated for its ease of use, fast loading
times, and helpful customer support

ET Money (2020): They highlighted the various features of the Groww app,
including its easy onboarding process paperless investing, and ability to invest
in multiple financial products.

Harry Markowitz : Modern Portfolio Theory(MPT) is a foundation theory of

portfolio management. Debeloped by Harry Markovitz in the 1950s MPT
proposes that investors can reduce their risk by diversifying their portfolio across
multiple assets with different risk and return characteristics. MPT argues that
investors should not only consider the expected return of an asset but also its
covariance with other assets in the portfolio.

Nielsen (2022): Customer acquisition and retention are essential for any
business, including investment platforms. In a study conducted by Nielson,it was
found that mobile apps have a higher retention rate than mobile websites. The
study also found that users who download an app are more likely to become long
term customers. Groww has been successful in acquiring and retaining
customers.

Nielsen (2019): A study found that Groww was the fastest-growing investment
app in India, with a growth rate of 90% year-on-year. The study also found that
Groww was the third most popular investment app in India, after Zerodha and
Paytm Money.

Business Today India: A study reported that Groww has disrupted the traditional
brokerage model in India by offering low-cost, user-friendly investment options.
The app's easy-to-use interface and minimal fees have made it popular among
young, first-time investors who may have previously been deterred by high fees
and complex investment options.

The Economic Times : Financial planners and experts noted that while
platforms like Groww are convenient and accessible, they may not provide the
personalized advice that some investors require.

William Sharpe, John Lintner, and Jan Mossin : In the 1960s, Capital Asset
Pricing Model (CAPM) is another widely used theory in portfolio management.
CAPM posits that an asset's expected return is determined by its beta, or
sensitivity to market risk. CAPM assumes that investors are rational and risk-
averse and that they require compensation for bearing risk. CAPM provides a
framework for calculating the required rate of return for an asset or portfolio,
based on its beta and the market risk premium.

Journal of Emerging Technologies and Innovative Research (2021) : A study

published in 2021 focused on the impact of the Groww app on mutual fund
investments. The study found that the app had a positive impact on the
investment behavior of users and helped them make more informed investment
decisions. The study also noted that the app was able to attract a large number of
new investors to the mutual fund industry.

Danko & Šoltés (2018) : In their work proposes to form an investment portfolio
based on Markowitz theory in combination with graph theory. Testing of the
resulting portfolios was carried out using simulation analysis. The results can be
used by individual investors in the formation of the optimization portfolio.

CHAPTER 3.- RESEARCH METHODOLOGY

OBJECTIVE OF STUDY:

● To study the influence of groww on investors.

● To know the importance of portfolio management.
● To determine how to build a portfolio through groww.
● To understand the investors need for portfolio management.
● To make analytical study on groww.

● To learn various ways on how to manage a portfolio on groww.

HYPOTHESIS

Null Hypothesis Ho – There is no significant ways of managing portfolio on

Groww.

Alternate Hypothesis H1 – There are significant ways of managing portfolio

on Groww.

DATA COLLECTION

● PRIMARY DATA: For this study, Primary data has been collected through
questionnaire method and survey method.

● SECONDARY DATA: Secondary data has been collected through internet,

newspapers, articles, etc.

● SAMPLING UNIT: The Samples are collected from students, working

women, businessmen, housewives, and common people

● TARGET AUDIENCE: The questionnaire is filled out by the respondents of

the age between 18 – 70.

● SAMPLE SIZE: The total sample size of the study is 100.

● SCOPE AND LIMITATION OF THE STUDY: The samples are collected

within the area of bhiwandi.

CHAPTER 4. - DATA ANALYSIS, INTERPRETATION AND

PRESENTATION:

1. What is your investment philosophy?

OPTIONS RESPONSES IN%

ACTIVE 36 36

PASSIVE 35 35
 HYBRID 29 29

Through the responses from this question, we can interpret that 36% people have
choosed Active Investment Philosophy,35% people have choosed Passive Investment
Philosophy and 29% people have choosed Hybrid Investment Philosophy.From this
response we can understand that many people uses Active Investment Philosophy.

2. What is your risk tolerance?

Options Responses In %

High 34 34

Moderate 39 39

Low 27 27
Through the responses from this question, we can understand that 39% people
are willing to take moderate risk while investing.There are 34% people whose
risk tolerance is high. 27% people has low risk tolerance. The above pie chart
shows that maximum number of investors invests in market with moderate
risk.

3. What is your investment time horizon?

Options Response In %

Short Term 35 35

Medium Term 41 41

Long Term 24 24
Through the responses from this questions, we can interpret that there are 41%
people who invests for medium term.35% people who believes in short term
investment.24% of people believes in long term investment. The aim of this
questions is to find out that for how long does investors investing period.

4. How do you monitor your portfolio performance?

 Options Responses IN %

Monthly 41 41

Monthly
Quarterly Quarterly 31 31 Annually

Annually 28 28

Responses

Annually
28%
Monthly

41%

Quarterly 31%

Through this question we can see that there are 41% people who monitor there
portfolio on monthly basis.31% people monitor there portfolio performance on
quarterly basis. Remaining 28% people monitor there portfolio on annually
basis. The investors need to monitor their portfolio performance on regular
intervals to gain experience. The aim of this questions is to find out that how
regularly does investor monitor their portfolio performance.

5. Which of the following investment is considered safest?

Options Responses IN%

Stocks 41 41

Bonds 31 31

Gold 28 28
Through the responses from this question , we can interpret that 41% people
believes that stocks are considered as safest investment. While 31% people
believes that bonds are safest to invest. Gold is considered as safest investment
by 28% people. The aim of these question is to find that which investment is
considered as safest investment because so many people invests daily in one of
this markets knowing risks. Daily investing makes people finding different
markets and it becomes easy to find safe investments.
 6. How did you first hear about Groww app?

Options Responses IN%

Through a friend or a family 39 39
member
Through an advertisement or a 37 37
social media app
Through an online search for 24 24
investment app

Responses

Through an online
search for investment
app
24% Through a friend or a
family member
39%

Through an
advertisement or a
social media app
37%

Through a friend or a family member Through an advertisement or a social media app

Through an online search for investment app

Through the responses from this question, we can see that 39% people heard
about Groww app from friend or family. 37% people know about Groww app
from advertisement and social media. While there are 24% people who find
Groww app while searching for investment app.

7. What type of investments do you typically make through Groww app?

Options Responses IN%

Mutual Funds 29 29

Stocks 26 26

Gold 13 13

All of the above 32 32

Through the responses given by the people on this question we can see that
29% people invests only in mutual funds through groww app. While 26%
people invests in stocks.13% people invests in gold and there are 32% people
who invests in all 3 markets i.e Stocks, Mutual Fund and Gold.

8. How satisfied are you with the user interface and overall experience of
using the Groww app?

Options Response IN%

Very Satisfied 17 17

Somewhat Satisfied 33 33

Neutral 34 34

Very dissatisfied 4 4

Somewhat dissatisfied 12 12
Through the responses from this question, we can understand that 34% people
are neutral i.e neither satisfies nor dissatfied about Groww user interface and
experience.There are 33% are somewhat satisfies. While 17% people are very
satisfied with Groww user interface. There 12% people who are somewhat
dissatisfied while there are only 4% people who are very dissatisfied.

9. What type of investment are you interested in through Groww app?

Options Response IN%

Stocks 28 28

Mutual Funds 29 29

Exchange Traded Fund 20 20

All of the above 23 23

Through the responses from this question, we can interpret that 29% people
invests in mutual fund. While 28% people wants to invest in Stocks. There
are 20% people who wants to invest in Exchange Traded Fund and 23%
people are interested in investing all of the above investments.

10. Are you comfortable with the fees and charges associated with the
investing through Groww app?

Options Response IN%

Yes 51 51

No 22 22

Need more information 27 27

before deciding
Through the responses from this question , we can interpret that 51% people
are comfortable with fees and charges associated with investing . 22% people
are not comfortable with charges associated with investing while 27% people
are not clear about charges they need more information and rime to conclude.
 CHAPTER 5. CONCLUSION AND SUGGESTION

The aim of this study is to investigate the effectiveness of portfolio management

with Groww. Portfolio management is seen as a holistic activity, dependent on
the Investors strategy. This study shows the relation on how the portfolio
decisions are made and how the portfolio is managed. Also other factors which
has affect the efficiency of portfolio management are proved realistic in the
world. The study showed interconnection between portfolio and portfolio
management. The results indicate that the investors are facing challenges in
managing portfolio . In this digital era there are various number of tools available
in the market due to this increasing pace in digital time investors are facing lot
of confusions regarding various things. This confusions are occurring because a
lot of investors are trying different types of apps and tools to manage their stock
portfolio after taking review of such apps and tools they find it hard to make
choices. Currently, many apps are available on smartphones, such as Groww,
Zerodha, Angel Broking Stock Trading App, ‘MO investor’ by Motilal Oswal,
‘IIFL Markets’ by IIFL securities, and many others which have millions of
downloads. Millions of Indians, mostly millennials between the ages of 20 and
35, trade daily through these. These young millennials who are trying to become
a successful investors are majority of investors who are having difficult time in
managing portfolio. Due to these investment tools investors sometimes buys a
unwanted shares and increase the capacity of their portfolio which then finds it
hard to manage. There are many investors who are having trouble in managing
portfolio while there are many others who are easily enjoying managing portfolio
because they had find their tool.
Groww has helped a lot of investors creating and managing portfolio. As we all
know investor while upgrading or downgrading his portfolio he should remain
cautious because the stocks and funds are emerged to diversify the risk while
maximizing returns. Groww has created a best platform for the investors
providing different kinds of benefits to manage portfolio. To build a portfolio an
investors consumes so much time to observing and analyzing the market risk and
returns. Investors finds it easy to understand market risks and seeing growth of
their portfolio on everyday basis.
There are many other investors who finds it difficult to manage portfolio through
groww app. there might be so many reasons on why investors not recommending
groww is because groww was established not so long ago people are investing
way before groww was formed as a result investors who has already generated
their portfolio with other tools or apps finds it little difficult to try new things.

Portfolio management is an effective method for organizations to manage their

products through their development lifecycles, priority, gating, and consistent
approaches, which are taken into consideration. However, there are some
challenges which can be overcome by implementation of new processes and a
shift in culture. A balanced portfolio is integral to the resource availability and
risk management. A robust review system is required throughout the
development lifecycle. One of the main challenges in the portfolio management
is long-term decisions. Portfolio practice is important not only to support
managerial decisions but also to take better and faster decisions toward product
development in the market. Effective portfolio management allows investors to
develop the best investment plan matching their income, age, and risk-taking
capability, making it essential. With professional investment portfolio
management, investors can reduce their risks effectively and avail customized
solutions against their investment-oriented problems. It is, thus, one of the
inherent parts of undertaking any investment venture.
 BIBLIOGRAPHY

Newspaper
Economics Times of India.
The Hindu
The Financial Express

WEBILOGRAPHY

http://www.groww.in/

https://www.bankbazaar.com/

http://www.slideshare,net

http://www.quora.com/

http://researchgate.net/

http://dataconferenceworld.in

http://coursehero.com/

http://www.inves topedia.com

http://www.wallstreetmojo.com
ANNEXURE

1. What is your investment philosophy?

● Active
● passive
● hybrid

2. What is your risk tolerance?

● High
● Moderate
● Low

3. What is your investment time horizon?

● Short term
● Medium term
● Long term

4. How do you monitor your portfolio performance?

● Monthly
● Quarterly
● Annually

5. Which of the following investment is considered safest?

● Stocks
● Bonds
● Gold

6. How did you first hear about Groww app?

● Through a friend or a family member
● Through an advertisement or a social media app
● Through an online search for investment app

7. What type of investments do you typically make through Groww app?

● Mutual Funds ● Stocks
● Gold
● All of the above
8. How satisfied are you with the user interface and overall experiance of using the
Groww app?
● Very Satisfied
 ● Somewhat Satisfied
● Neutral
● Very dissatisfied
● Somewhat dissatisfied
9. What type of investment are you interested in through Groww app?
● Stocks
● Mutual Fund
● Exchange Traded Fund
● All of the aboves

10. Are you comfortable with the fees and charges associated with the investing
through Groww app?
● Yes
● No
● Need more information before deciding