Description

Groww Mutual Fund reduces minimum installment numbers for STP across all frequencies to 6 installments and introduces changes to STP/SWP facilities for Groww Nifty Midcap 150 Index Fund effective December 01, 2025.

Summary

National Stock Exchange of India Limited has notified members about changes in Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) facilities for Groww Mutual Fund schemes on the NSE Invest Platform. The key change is a significant reduction in minimum installment numbers for STP across all frequencies from varying levels (180 for daily, 24 for weekly, 12 for monthly, 4 for quarterly) to a uniform 6 installments across all frequencies. Additional modifications apply specifically to the Groww Nifty Midcap 150 Index Fund regarding STP/SWP frequency, eligibility criteria, processing timelines, and default dates.

Key Points

  • Minimum installment number for STP reduced to 6 across all frequencies (Daily, Weekly, Monthly, Quarterly) for all Groww Mutual Fund schemes except ETFs
  • Previous minimum installments: Daily-180, Weekly-24, Monthly-12, Quarterly-4
  • Weekly STPs can now be initiated on any day from Monday to Friday with Friday as default
  • No minimum balance required in Transferee scheme for STP/SWP registration
  • Registration and cancellation of STP/SWP now requires minimum 7 calendar days
  • Default SWP date set to 15th of every month (or next business day if holiday)
  • Changes apply to Groww Nifty Midcap 150 Index Fund and all other Groww MF schemes
  • Circular reference number: NSE/NMFTM/71565 (1026/2025)

Regulatory Changes

STP Minimum Installment Reduction:

  • Daily frequency: 180 → 6 installments
  • Weekly frequency: 24 → 6 installments
  • Monthly frequency: 12 → 6 installments
  • Quarterly frequency: 4 → 6 installments

Groww Nifty Midcap 150 Index Fund Specific Changes:

  • Weekly STP frequency now available on any weekday (Monday-Friday)
  • Elimination of minimum balance requirement in Transferee scheme for STP/SWP registration
  • Processing timeline standardized to 7 calendar days for registration/cancellation
  • Default SWP date standardized to 15th of every month

Compliance Requirements

For NSE Members:

  • Update systems to reflect new minimum installment numbers for Groww Mutual Fund STP facilities
  • Implement changes to STP/SWP processing for Groww Nifty Midcap 150 Index Fund
  • Ensure investors are informed of the revised parameters

For Investors:

  • Register/update email ID and mobile number with Groww Mutual Fund for paperless communications (Go Green Initiative)
  • Note new flexibility in STP/SWP options with lower minimum installment requirements
  • Be aware of new default dates and processing timelines

Important Dates

  • Effective Date: December 01, 2025
  • Circular Issuance Date: December 01, 2025
  • Notice cum Addendum Date: November 24, 2025
  • Processing Timeline: 7 calendar days minimum for STP/SWP registration/cancellation from effective date

Impact Assessment

Operational Impact:

  • Lower entry barriers for investors wanting to use STP facilities with Groww Mutual Fund schemes
  • Increased flexibility in STP frequency selection, particularly for weekly plans
  • Simplified processing with uniform 7-day timeline for registration/cancellation

Investor Impact:

  • Enhanced accessibility to systematic investment plans with significantly reduced commitment period
  • Greater convenience with flexible weekly STP days and standardized default dates
  • Removal of minimum balance requirement reduces complexity for investors

Market Impact:

  • Limited to Groww Mutual Fund schemes only, no broader market implications
  • May encourage more retail participation in systematic investment plans
  • Aligns with industry trend toward investor-friendly simplification of mutual fund processes

Risk Assessment:

  • Low impact - purely operational enhancement affecting single fund house
  • No changes to investment strategy, fund management, or fee structure
  • Standard mutual fund risks remain applicable

Impact Justification

Operational change affecting only Groww Mutual Fund schemes on NSE platform, making STP more accessible by reducing minimum installment requirements but limited to single fund house with no market-wide impact