Description

Groww Mutual Fund revises STP/SWP facilities including reduction of minimum instalments from 24/12/4 to 6 for weekly/monthly/quarterly frequencies, and updates processing timelines effective December 1, 2025.

Summary

Groww Asset Management Ltd. has issued Notice cum Addendum No. 42/2025-2026 announcing changes to Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) facilities for Groww Mutual Fund schemes on the BSE StAR MF platform, effective December 1, 2025. The key change is a significant reduction in minimum number of instalments required for STP across all schemes (except ETFs), making these facilities more accessible to investors.

Key Points

  • Minimum instalments for STP reduced uniformly to 6 instalments across all frequencies (weekly, monthly, quarterly)
  • Previously: Weekly required 24 instalments, Monthly required 12, Quarterly required 4
  • Daily STP minimum reduced from 180 to 6 instalments
  • Weekly STPs can be initiated on any weekday (Monday to Friday) with Friday as default
  • No minimum balance required in Transferee scheme for STP/SWP registration
  • Registration and cancellation of STP/SWP require 7 calendar days from receipt of request
  • Default SWP date set to 15th of every month (or next business day if holiday)
  • Changes apply to all Groww Mutual Fund schemes except ETFs

Regulatory Changes

No regulatory changes. This is an operational facility enhancement by Groww Mutual Fund to improve investor convenience and flexibility in using STP/SWP facilities on the BSE StAR MF platform.

Compliance Requirements

For Investors:

  • Existing STP/SWP arrangements will continue as per existing terms
  • New STP/SWP registrations from December 1, 2025 will follow revised norms
  • Investors encouraged to register/update email ID and mobile number under Go Green Initiative
  • Allow minimum 7 calendar days for processing STP/SWP registration/cancellation requests

For Groww Mutual Fund:

  • Update Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • Implement revised processing timelines and eligibility criteria

Important Dates

  • November 24, 2025: Notice issued
  • December 1, 2025: Effective date for all changes to STP/SWP facilities
  • Processing Timeline: 7 calendar days minimum for STP/SWP registration/cancellation

Specific Changes for Groww Nifty Midcap 150 Index Fund

STP Frequency & Default Day:

  • Weekly STPs available on any weekday (Monday-Friday)
  • Default day: Friday if no day selected
  • If STP date is holiday, processing on next working day

Eligibility Criteria:

  • No minimum balance required in Transferee scheme for STP/SWP registration

Processing Timeline:

  • Minimum 7 calendar days from receipt for registration/cancellation

SWP Default Date:

  • Default: 15th of every month
  • If 15th is holiday, processing on next business day

Impact Assessment

Positive Impacts:

  • Significantly lower entry barrier for investors wanting to use STP/SWP facilities (75% reduction in minimum instalments for weekly/monthly)
  • Greater flexibility with weekly STP day selection
  • Elimination of minimum balance requirement increases accessibility
  • Standardized 6-instalment minimum across frequencies simplifies decision-making

Market Impact:

  • Limited to Groww Mutual Fund investors using BSE StAR MF platform
  • Expected to increase adoption of STP/SWP facilities due to lower commitment requirement
  • No impact on existing STP/SWP arrangements
  • No impact on NAV, fund performance, or market operations

Operational Impact:

  • Processing timeline of 7 days provides clear expectation for investors
  • Standardized defaults (Friday for STP, 15th for SWP) simplify operations

Investment Manager Details

Groww Asset Management Ltd.

  • CIN: U65991KA2008PLC180894
  • Corporate Office: Mumbai (Prabhadevi)
  • Registered Office: Bangalore

Mutual fund investments are subject to market risks. Read all scheme related documents carefully.

Impact Justification

Operational change specific to Groww Mutual Fund's STP/SWP facilities on BSE platform. Makes entry easier by reducing minimum instalments but affects only investors using these specific facilities. No market-wide impact or regulatory compliance requirement.