Description

Samco Mutual Fund introduces weekly SIP frequency and revises minimum installment amounts for daily and monthly SIPs across all open-ended schemes.

Summary

Samco Asset Management Private Limited has announced two key changes to its mutual fund schemes effective July 11, 2025: introduction of weekly frequency Systematic Investment Plans (SIP) and revision of minimum installment amounts for existing SIP frequencies across all open-ended schemes.

Key Points

  • Introduction of weekly SIP frequency for all open-ended schemes of Samco Mutual Fund
  • Weekly SIP cycle dates: Monday to Friday
  • Revised minimum installment amounts for daily and monthly SIPs
  • Lower entry barrier with Rs. 250 minimum for amounts up to Rs. 1,000
  • Special provisions for Samco ELSS Tax Saver Fund with Rs. 500 minimum
  • Changes applicable to new SIP enrollments from July 11, 2025

Regulatory Changes

New Weekly SIP Introduction:

  • Frequency: Weekly (Monday to Friday)
  • Minimum: Rs. 250 in multiples of Rs. 1 up to Rs. 1,000 (24 installments) OR Rs. 1,000 and above in multiples of Rs. 1 (6 installments)
  • ELSS Exception: Rs. 500 minimum in multiples of Rs. 500

Revised SIP Minimums:

  • Daily SIP: Reduced from Rs. 500 to Rs. 250 (for amounts up to Rs. 1,000)
  • Monthly SIP: Reduced from Rs. 500 to Rs. 250 (for amounts up to Rs. 1,000)
  • Higher amounts (Rs. 1,000+): Reduced installment requirements from 10-12 to 6 installments

Compliance Requirements

  • Addendum forms integral part of Statement of Additional Information (SAI), Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • All other terms and conditions in existing documents remain unchanged
  • Changes apply only to new SIP enrollments on or after effective date

Important Dates

  • Effective Date: July 11, 2025
  • Notice Date: July 11, 2025
  • Applicability: New SIP enrollments from effective date onwards

Impact Assessment

Positive Impacts:

  • Lower entry barriers for retail investors with Rs. 250 minimum
  • Increased flexibility with weekly SIP option
  • Reduced installment commitments for higher amounts (6 vs 10-12 installments)

Market Impact:

  • Minimal market-wide impact as changes are specific to Samco Mutual Fund
  • May encourage increased retail participation in mutual fund investments
  • Competitive pressure on other fund houses to offer similar flexible terms

Impact Justification

Operational change specific to one mutual fund's SIP offerings with minimal market-wide impact