Description

Groww Mutual Fund revises STP/SWP facilities including reduction of minimum instalments from 180/24/12/4 to uniform 6 instalments across all frequencies, and updates to processing timelines and eligibility criteria effective December 1, 2025.

Summary

Groww Asset Management Ltd. has announced significant changes to Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) facilities across Groww Mutual Fund schemes effective December 1, 2025. The key change is a substantial reduction in minimum instalments required across all frequencies - from 180/24/12/4 instalments to a uniform 6 instalments for daily/weekly/monthly/quarterly frequencies respectively. Additional changes include modified eligibility criteria removing minimum balance requirements, extended 7-day registration timelines, and new default dates for weekly STP and monthly SWP.

Key Points

  • Minimum instalments reduced drastically: Daily (180→6), Weekly (24→6), Monthly (12→6), Quarterly (4→6)
  • Changes apply to all Groww Mutual Fund schemes except ETFs
  • No minimum balance required in transferee scheme for STP/SWP registration
  • Weekly STPs can be initiated on any weekday (Monday-Friday) with Friday as default
  • Default SWP date changed to 15th of every month (previously unspecified)
  • Registration and cancellation timeline extended to 7 calendar days
  • Holiday processing rules clarified - transactions processed on next working day
  • Effective date: December 1, 2025
  • Notice dated: November 24, 2025

Regulatory Changes

This is an operational change to mutual fund facility terms rather than a regulatory mandate. The changes update the Scheme Information Document (SID) and Key Information Memorandum (KIM) for Groww Mutual Fund schemes. The notice cum addendum forms an integral part of these governing documents.

Compliance Requirements

  • Groww Asset Management Ltd. must update SID and KIM documents for all affected schemes
  • Investors are encouraged to register/update email ID and mobile number under Go Green Initiative for paperless communications
  • BSE StAR MF platform must implement the revised facility parameters from the effective date
  • All other terms and conditions in existing SID and KIM remain unchanged

Important Dates

  • Notice Date: November 24, 2025
  • Effective Date: December 1, 2025
  • Registration/Cancellation Timeline: Minimum 7 calendar days from receipt of request
  • Default Weekly STP Day: Friday (if not selected by investor)
  • Default Monthly SWP Date: 15th of every month (if not selected by investor)

Impact Assessment

Positive Impact on Investors:

  • Dramatically lower commitment barrier for systematic investing/withdrawal - daily STP participants previously required 180 instalments (approximately 6 months) now need only 6 instalments
  • Increased flexibility with weekly STP day selection (any weekday)
  • Removal of minimum balance requirement in transferee scheme improves accessibility
  • Clearer processing rules with defined default dates and holiday handling

Operational Impact:

  • Makes Groww Mutual Fund’s systematic facilities more competitive and investor-friendly
  • Uniform 6-instalment requirement across frequencies simplifies understanding
  • 7-day processing timeline for registration/cancellation provides operational buffer
  • Applies to all Groww schemes except ETFs, affecting broad investor base on BSE StAR MF platform

Market Significance: Medium impact as this affects investor convenience and accessibility to systematic investment facilities but does not change fund performance, NAV calculations, or market trading mechanisms. The changes lower entry barriers and may encourage greater participation in systematic investment plans.

Impact Justification

Significant operational changes for Groww Mutual Fund investors reducing minimum commitment requirements for STP/SWP from 180 to 6 instalments for daily frequency, making systematic investment/withdrawal more accessible. Affects all Groww schemes except ETFs.