Description

Aditya Birla Sun Life Mutual Fund modifies Daily SIP minimum amounts, reduces Liquid Fund minimum application to Rs. 100, and suspends fresh subscriptions in three international equity schemes effective October 7-8, 2025.

Summary

Aditya Birla Sun Life Mutual Fund has issued Addendum No. 40/2025 announcing three key changes: (1) reduction in minimum Daily SIP instalment amounts for online and digital platforms to Rs. 10 for equity/hybrid schemes and Rs. 30 for Liquid Fund, (2) lowering of minimum application amount for Aditya Birla Sun Life Liquid Fund Growth option from Rs. 500 to Rs. 100, and (3) suspension of fresh subscriptions and switch-ins for three international equity schemes effective October 7, 2025. Existing SIP/STP registrations will continue to be processed.

Key Points

  • Daily SIP minimum instalment reduced to Rs. 10 for Equity and Hybrid Schemes (from unspecified higher amount)
  • Daily SIP minimum instalment set at Rs. 30 for Aditya Birla Sun Life Liquid Fund
  • Liquid Fund Growth option minimum application reduced from Rs. 500 to Rs. 100
  • Fresh subscriptions suspended for Aditya Birla Sun Life International Equity Fund
  • Fresh subscriptions suspended for Aditya Birla Sun Life Global Emerging Opportunities Fund
  • Fresh subscriptions suspended for Aditya Birla Sun Life Global Excellence Equity Fund of Fund
  • Existing SIP/STP registrations prior to effective date will continue to be processed
  • No new SIP/STP registrations will be accepted for suspended schemes
  • Changes apply to BSE StAR MF platform

Regulatory Changes

This is an operational change by the fund house modifying investment parameters and temporarily restricting access to certain schemes. The AMC reserves the right to restrict the number/list of applicable schemes for Daily SIP facility and to modify features in future. Updates will be incorporated into the Statement of Additional Information (SAI), Scheme Information Document (SID), and Key Information Memorandum (KIM).

Compliance Requirements

  • Applications for fresh subscriptions/switch-ins received post cutoff timing on October 7, 2025 for the three international equity schemes will not be processed
  • No fresh SIP/STP registrations will be accepted for suspended schemes
  • No units will be allotted under SIP/STP falling on or after October 7, 2025 for suspended schemes
  • Distributors and platforms must update their systems to reflect new minimum amounts
  • Investors must be informed through updated SAI, SID, and KIM documents

Important Dates

  • October 6, 2025: Addendum notice date
  • October 7, 2025: Effective date for suspension of fresh subscriptions in three international equity schemes
  • October 8, 2025: Effective date for Daily SIP minimum amount changes and Liquid Fund minimum application amount reduction

Impact Assessment

Positive Impacts:

  • Lower entry barriers (Rs. 10 Daily SIP, Rs. 100 Liquid Fund minimum) make investing more accessible to retail investors
  • Enhanced financial inclusion through micro-investment opportunities
  • Existing SIP/STP investors in suspended schemes remain unaffected

Negative Impacts:

  • New investors cannot enter three international equity schemes, limiting portfolio diversification options
  • Switch-in facility blocked for suspended schemes, restricting rebalancing strategies
  • Suspension suggests possible capacity constraints or strategic repositioning in international equity offerings

Market Implications:

  • Reflects potential AUM management or performance considerations in international equity schemes
  • May indicate fund house’s strategic focus shift away from international equity products
  • Investors seeking international exposure must look at alternative fund houses or schemes

Impact Justification

Affects investor access to three international equity schemes and modifies entry barriers for Liquid Fund and Daily SIP investments, but limited to specific Aditya Birla schemes on BSE StAR MF platform.