Groww the biggest investment platform in India, has officially provided commodities trading services which will allow its users to trade in crude oil, gold, silver, and natural gas in the Multi Commodity Exchange (MCX). This is a significant move in the growth of Groww to the commodities market as the company enhances its product line beyond equities and mutual funds.
The information on the Groww site indicates that available users of the active trading accounts can now trade commodities between 9 a.m. and 11:30 p.m. which is in accordance with the usual MCX trading time. The site is intended to enable millions of retail investors in India to access commodity investing more easily and readily.
A Step in the Right Direction of Financial Diversification
Groww is undertaking a wider plan of entering the wealth and capital markets ecosystem with introduction of commodities trading. Over the last few months, the Bengaluru-based fintech has implemented a new set of product innovations to support various needs of investors:
- Corporate Bonds to appeal to fixed-income investors.
- Margin Trading Facility (MTF) to facilitate leveraged equity trading.
- Groww 915 is a platform that will be targeted at professional traders who require advanced trading features.
- It has a wealth advisory business, Groww W, which is a premium service that was introduced as a result of its acquisition of Fisdom, enhancing the prospects in the wealth advisory business.
IPO Preparations and Markets Position
The decision by Groww to move to commodities is at a time when it is said to be planning an initial public offering (IPO). The decision will also ensure that it continues to hold a strong position as one of the most comprehensive investment platforms in India being able to provide all stocks and mutual funds as well as ETFs, bonds and commodities.
As it enters the commodity trading segment, Groww will be competing directly with the existing brokers like Zerodha, Angel One and Upstox who have introduced commodities trading into their platform.
The Retail Investor Empowerment.
Since commodities such as gold, silver, and crude oil have become the common investment option in the volatile markets, Grow new feature enables the retail investors to diversify their portfolios and mitigate inflationary and market risks. The company still focuses on the ease of use and the instructional capabilities, which simplify the process of acquiring the basics of the commodity markets by a novice investor.
Conclusion
The recent commodities trading venture by Groww is an indication of its strategy to be a one-stop investment environment among Indian investors. With fintech about to undergo its highly anticipated IPO, its systematic diversification to various asset classes serves as a testament to the increased need in India to have integrated digital financial solutions.
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