Description

NAVI Mutual Fund announces discontinuation of SIPs with instalment amounts below Rs.100, requiring investors to top-up or face automatic cancellation by August 1, 2025.

Summary

NAVI AMC Limited has announced the discontinuation of Systematic Investment Plans (SIPs) with instalment amounts less than Rs.100 across all schemes of NAVI Mutual Fund. Affected investors have until July 31, 2025, to either increase their SIP amount to Rs.100 or above, voluntarily cancel their SIPs, or face automatic cancellation effective August 1, 2025.

Key Points

  • SIPs with instalment amounts below Rs.100 will be discontinued across all NAVI Mutual Fund schemes
  • Investors have three options: top-up to Rs.100+, voluntary cancellation, or automatic cancellation
  • The policy applies to all frequencies and plans except ELSS funds
  • Notice issued through addendum to scheme documents (SAI, SID, and KIM)

Regulatory Changes

This represents a minimum investment threshold implementation for SIP investments in NAVI Mutual Fund schemes, aligning with operational efficiency requirements.

Compliance Requirements

  • Investors with SIPs below Rs.100 must take action by July 31, 2025
  • Fund house to automatically cancel non-compliant SIPs from August 1, 2025
  • Updated scheme documents (SAI, SID, KIM) to reflect these changes

Important Dates

  • July 31, 2025: Deadline for investor action (top-up or voluntary cancellation)
  • August 1, 2025: Effective date for automatic cancellation of non-compliant SIPs
  • June 27, 2025: Date of original notice

Impact Assessment

This change primarily affects small retail investors with micro-SIPs. While it may reduce administrative costs for the fund house, it could impact financial inclusion for investors preferring very small systematic investments. The adequate notice period allows affected investors to adjust their investment strategy or migrate to other fund houses with lower minimum SIP amounts.

Impact Justification

Affects existing SIP investors with small amounts but provides adequate notice and options for compliance