Groww Liquid Fund(FN-IDCW)
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Business Overview
The Groww Liquid Fund (FN-IDCW) is a short-term investment solution designed for individuals seeking to park their surplus funds while earning competitive returns. Ideal for risk-averse investors, this fund offers liquidity and stability, making it a smart choice for those looking to manage their cash flow effectively. It primarily invests in high-quality debt instruments, ensuring safety and reliability. With Groww's user-friendly platform, investors can easily monitor their investments and make informed decisions.
- Short-term investment solution
- Ideal for risk-averse investors
- Offers liquidity and stability
- Invests in high-quality debt instruments
- User-friendly platform for easy monitoring
- Helps manage cash flow effectively
Investment Thesis
Groww Liquid Fund stands out due to its strong promoter credibility and robust digital service growth. With an attractive valuation compared to peers, it offers a compelling investment opportunity for retail investors looking to capitalize on the expanding fintech landscape in India.
- Backed by a reputable promoter group, ensuring trust and reliability.
- Significant growth potential in digital services, tapping into India's fintech boom.
- Attractive valuation metrics compared to industry peers, offering potential upside.
- Focus on liquidity provides investors with flexibility and quick access to funds.
- Strong performance track record enhances investor confidence.
Opportunity vs Risk
- High liquidity for quick access
- Potential for stable returns
- Low expense ratio
- Suitable for short-term goals
- Diversification in debt instruments
- Interest rate fluctuations
- Credit risk from underlying assets
- Market volatility impact
- Limited long-term growth potential
- Inflation may erode returns
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10BusinessHighThe fund operates in a sector that is becoming increasingly relevant, but lacks a strong competitive moat.
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10GrowthHighRevenue and profit growth have been consistent, but growth rates are moderate.
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10ProfitabilityHighROE and ROCE are acceptable, but cash flow is not significantly outperforming net profit.
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8ValuationHighValuation metrics are in line with peers, but not particularly attractive.
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6BalanceGoodThe balance sheet shows moderate debt levels and adequate liquidity.
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5GovernanceGoodPromoter holding is stable, but there are minor concerns about disclosures.
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2DriversLowLimited growth drivers identified, with some execution risks present.
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0TechnicalsLowMarket sentiment is neutral with low momentum.