Nithin Kamath vs Groww: Zerodha Founder’s Veiled X Post Sparks Public Clash Over Direct vs Regular Mutual Funds

A routine post by Zerodha founder and CEO Nithin Kamath on X escalated into a rare public exchange between two of India's largest investment platforms, after Groww issued a detailed clarification within hours. At the core of the exchange lies a debate over whether online investment platforms should stick strictly to direct mutual funds or offer regular plans bundled with advisory services.

Kamath's Post Takes A Swipe Without Naming Groww

Kamath revisited Zerodha's founding philosophy, saying the company has always believed customers should not pay more simply because they invest larger amounts. He wrote that when Zerodha launched its discount brokerage model in 2010, the company decided to charge the same fee regardless of trade size. Zerodha CEO Nithin Kamath Says Equity Investors Realised Rs 50,000 Crore in Profit in Last Four Years.

He extended that same reasoning to mutual funds, stating that Zerodha launched its Coin platform only after it could offer direct mutual fund plans exclusively. Kamath argued that platforms cannot describe themselves as "discount" or "low-cost" if they charge percentage-based fees for transactions that require the same effort to execute.

What Nithin Kamath Said

When we started the discount brokerage (flat fee per trade) model in India in 2010, we decided to charge the same fee regardless of trade size. The logic was simple: if the effort to execute a trade is the same, why should customers pay differently? We applied the same logic to… pic.twitter.com/we0sogPJdY

— Nithin Kamath (@Nithin0dha) July 9, 2026

He also pointed to Coin's scale, noting the platform now manages nearly INR 1.6 lakh crore in direct mutual fund assets and has helped customers save thousands of crores in commissions.

The sharper line came later in his post, when Kamath said many direct mutual fund platforms that launched alongside Coin had either disappeared or pivoted, and that the few platforms still offering direct plans were reconsidering that choice. He did not name Groww directly, but the timing was notable, coming just days after reports said Groww had begun offering regular mutual funds through its new Groww Prime offering. What Is ‘Emergency Call’ Scam? Zerodha CEO Nithin Kamath Reveals How This New Fraud Works (Watch Video).

Groww Responds: 'Nothing Changes'

Groww responded with its own post on X, saying there had been confusion and misinformation surrounding its mutual fund offering. The company stated clearly that direct mutual funds are, and will remain, the heart of Groww.

According to Groww, more than 1 crore investors have built over INR 1.9 lakh crore worth of mutual fund investments on its platform, making it India's largest mutual fund platform by that measure. The company said DIY investors will continue to get direct mutual funds free of cost and with zero commission.

Groww Clarifies MF Prime Offering

We've seen some confusion and some misinformation about Groww's mutual fund offering. So let us be unambiguous.

Direct mutual funds are, and will remain, the heart of Groww. Over 1 crore investors have built more than ₹1.9 lakh crore of mutual fund investments on our platform,… https://t.co/GTzhpih7TL

— Groww (@_groww) July 9, 2026

Groww described its newly launched MF Prime as an optional product rather than a replacement for direct plans, aimed at investors who want research backed recommendations, portfolio reviews and guidance on buying, holding or exiting investments. The company said that for existing DIY customers on Groww, nothing changes, and called any suggestion that it had abandoned direct mutual funds incorrect.

What Exactly Is Groww Prime

Unlike Groww's traditional platform, which focused exclusively on direct mutual funds, Groww Prime offers advisory led investing that includes regular mutual fund plans for users who opt in voluntarily.

Regular plans carry distributor commissions built into the expense ratio, while direct plans do not. Over long investment horizons, that cost difference can meaningfully affect overall returns. Groww maintains that Prime is meant for investors seeking professional guidance, while its core direct mutual fund offering remains unchanged.

A Clash Of Business Models

Experts say the public exchange reflects two different philosophies of wealth creation. Zerodha has consistently positioned itself as a champion of low-cost, self-directed investing, built around flat brokerage charges and commission-free direct mutual funds.

Groww, founded in 2016 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, built its early popularity on the same direct-investing approach before expanding into a broader wealth management ecosystem. With Prime, the company is now looking to serve investors willing to pay indirectly through regular plans in exchange for research and portfolio guidance.

What It Means For Investors

For investors, the exchange serves as a useful reminder to understand what exactly they are signing up for. Direct mutual funds generally carry lower expense ratios because they eliminate distributor commissions, while regular plans include those commissions but may come with added advisory or distribution support.

Ultimately, the right choice depends on whether an investor prefers to make investment decisions independently or wants professional guidance along the way.

(The above story first appeared on LatestLY on Jul 10, 2026 01:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).