They sent a mail. But the default was opt-in.
Most users didn’t realize what they signed up for.
Why is Groww doing this?
It makes it harder for users to switch platforms or move to direct plans, increasing user lock-in.
Demat mode also enables pledging, loans, and other upsell products, improving monetization.
From an ops perspective, maintaining a single backend for stocks and mutual funds lowers complexity and cost.
What’s the problem?
The opt-in was default. There was no clear, informed choice.
The consequences weren’t clearly laid out.
This change introduces demat charges (₹300–700/year), reduces flexibility to switch AMCs or platforms, and may cause redemption delays.
Any benefit?
It gives you one consolidated view of stocks and mutual funds.
It helps active traders who want to pledge assets or take loans.
But for typical SIP users, this adds cost without meaningful upside.
You should choose how your investments are stored, not the platform.
Opt-out link in comments.
Business Groww MutualFunds Fintech
This post was originally shared by on Linkedin.