Description

Axis Mutual Fund reduces minimum application amounts for Liquid Fund and Overnight Fund from Rs. 500 to Rs. 100, and introduces monthly SIP for Overnight Fund.

Summary

Axis Mutual Fund has announced changes to minimum application amounts for its Liquid Fund and Overnight Fund schemes on BSE StAR MF platform, effective August 25, 2025. The minimum lumpsum investment amount has been reduced from Rs. 500 to Rs. 100, and minimum SIP amounts have been reduced from Rs. 1,000 to Rs. 100. Additionally, monthly SIP frequency has been introduced for the Overnight Fund.

Key Points

  • Minimum application amount for lumpsum transactions reduced from Rs. 500 to Rs. 100 for both Axis Liquid Fund (Growth) and Axis Overnight Fund (Growth)
  • Minimum SIP amount reduced from Rs. 1,000 to Rs. 100 for both schemes
  • Monthly SIP frequency introduced for Axis Overnight Fund (Growth)
  • Changes apply to switch-ins and additional purchases as well
  • Minimum installments remain unchanged at 6 for all SIP frequencies

Regulatory Changes

Revision of investment thresholds for retail investors:

  • Lower entry barriers for mutual fund investments
  • Enhanced accessibility for small investors
  • Introduction of additional SIP frequency options

Compliance Requirements

  • Notice forms integral part of Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • All other terms and conditions of existing documents remain unchanged
  • Investors should read all scheme-related documents carefully

Important Dates

  • Effective Date: August 25, 2025
  • Notice Date: August 14, 2025
  • Circular Number: 51/2025-2026

Impact Assessment

Market Impact: Medium - Makes mutual fund investments more accessible to small retail investors by significantly reducing minimum investment amounts

Operational Impact: Medium - May increase transaction volumes due to lower entry barriers, potentially attracting new investor segments

Investor Impact: Positive - Enhanced accessibility for retail investors with limited capital, providing more flexible investment options through reduced minimums and additional SIP frequency

Impact Justification

Impacts investor accessibility by reducing minimum investment amounts and introducing new SIP options