Description

NJ Mutual Fund introduces daily frequency option under Systematic Transfer Plan (STP) effective February 2, 2026, allowing investors to transfer funds daily between eligible schemes.

Summary

NJ Mutual Fund has introduced a “Daily” frequency option under its existing Systematic Transfer Plan (STP) facility, effective February 2, 2026. This new feature allows investors to transfer a fixed amount on a daily basis from an eligible source scheme to an eligible target scheme on the BSE StAR MF Platform. The facility requires a minimum transfer amount of Rs. 500 with a minimum of 12 installments.

Key Points

  • Daily STP frequency introduced effective February 2, 2026
  • Minimum transfer amount: Rs. 500 (in multiples of Re. 1)
  • For ELSS target schemes: amounts must be in multiples of Rs. 500 only
  • Minimum installments required: 12
  • STP cycle applies to all business days
  • Default start date: 5th business day after submission if not specified
  • End date perpetual unless specified, but ceases after three consecutive installment failures
  • Trustees/AMC reserve right to modify or discontinue facility prospectively

Regulatory Changes

This is an addendum to the Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI) of NJ Mutual Fund schemes. The notice-cum-addendum forms an integral part of these documents with relevant changes to be carried out accordingly.

Compliance Requirements

  • Investors must submit STP requests at NJ Mutual Fund ISC/KFin Collection Centres
  • Start and end dates should be specified; if not specified, default dates apply
  • Sufficient balance must be maintained in source scheme to avoid consecutive installment failures
  • All other existing terms and conditions of Systematic Transfer Plan facility remain unchanged

Important Dates

  • Effective Date: February 2, 2026
  • Notice Date: January 28, 2026
  • Default Start Date: 5th business day following submission (if not specified by investor)

Impact Assessment

This is a positive operational enhancement providing investors with greater flexibility in managing their mutual fund portfolios. The daily frequency option complements existing STP frequencies (likely weekly, monthly, quarterly), enabling more granular investment strategies. The impact is limited to NJ Mutual Fund investors and does not affect broader market operations or create new compliance obligations for market participants. The facility is voluntary and provides additional convenience without changing existing investment norms.

Impact Justification

Operational enhancement for mutual fund investors introducing additional transaction frequency option with no mandatory compliance requirements or market-wide impact