Description

Union Mutual Fund reduces minimum SWP instalment amount from Rs. 1000 to Rs. 500 for 28 designated schemes effective August 1, 2025.

Summary

Union Mutual Fund has announced a reduction in the minimum instalment amount for Systematic Withdrawal Plans (SWP) from Rs. 1,000 to Rs. 500 across 28 designated schemes, effective August 1, 2025. This change applies to all SWP frequencies including daily, monthly, quarterly, half-yearly, and yearly withdrawals.

Key Points

  • Minimum SWP instalment reduced from Rs. 1,000 to Rs. 500
  • Change applies to all withdrawal frequencies (Daily, Monthly, Quarterly, Half Yearly, Yearly)
  • Covers 28 designated schemes of Union Mutual Fund
  • Minimum amount still in multiples of Rs. 1 thereafter
  • Amendment applicable on prospective basis only

Regulatory Changes

This is an operational change by Union Mutual Fund to make SWP more accessible to investors by lowering the minimum withdrawal threshold. The change requires updates to the Statement of Additional Information (SAI), Scheme Information Document (SID) and Key Information Memorandum (KIM) of all affected schemes.

Compliance Requirements

  • Union Asset Management Company must update all scheme documents (SAI, SID, KIM)
  • Investors can implement new minimum amounts from the effective date
  • All other terms and conditions of existing schemes remain unchanged

Important Dates

  • Effective Date: August 1, 2025
  • Notice Date: July 25, 2025
  • Applicability: Prospective basis from effective date

Impact Assessment

This change enhances investor accessibility by reducing the barrier to entry for systematic withdrawals. It allows smaller investors to utilize SWP facilities across a comprehensive range of Union Mutual Fund schemes, potentially increasing participation in systematic withdrawal plans and improving liquidity management for retail investors.

Impact Justification

Operational change that enhances investor accessibility by lowering minimum SWP amounts across multiple schemes