Description

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

Summary

Aditya Birla Sun Life AMC Limited has issued Addendum No. 40/2025 announcing three key changes: (1) reduction in Daily SIP minimum instalment amounts to Rs. 10 for equity/hybrid schemes and Rs. 30 for Liquid Fund when availed through online/digital platforms, (2) reduction in 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 prior to the effective date will continue to be processed.

Key Points

  • Daily SIP minimum instalment reduced to Rs. 10 for Equity and Hybrid Schemes (online/digital platforms)
  • Daily SIP minimum instalment set at Rs. 30 for Aditya Birla Sun Life Liquid Fund (online/digital platforms)
  • Liquid Fund Growth option minimum application amount reduced from Rs. 500 to Rs. 100
  • Fresh subscriptions and switch-ins suspended for Aditya Birla Sun Life International Equity Fund
  • Fresh subscriptions and switch-ins suspended for Aditya Birla Sun Life Global Emerging Opportunities Fund
  • Fresh subscriptions and switch-ins suspended for Aditya Birla Sun Life Global Excellence Equity Fund of Fund
  • Existing SIP/STP registrations prior to October 7, 2025 will continue to be honored
  • No fresh SIP/STP registrations accepted for suspended schemes on or after October 7, 2025
  • AMC reserves right to modify Daily SIP features and restrict applicable schemes

Regulatory Changes

This notice-cum-addendum modifies the Statement of Additional Information (SAI), Scheme Information Document (SID), and Key Information Memorandum (KIM) for affected schemes. The changes represent operational modifications to investment parameters rather than regulatory compliance changes. All modifications are at the discretion of the Asset Management Company.

Compliance Requirements

  • Investors seeking fresh subscriptions or switch-ins to the three suspended international equity schemes must complete applications before the October 7, 2025 cutoff time
  • New Daily SIP registrations through online/digital platforms must comply with revised minimum instalment amounts of Rs. 10 (equity/hybrid) or Rs. 30 (liquid fund) effective October 8, 2025
  • Liquid Fund Growth option applications must meet the new Rs. 100 minimum (down from Rs. 500) effective October 8, 2025
  • Distributors and platforms must update their systems to reflect the suspended schemes and revised minimum amounts
  • Existing SIP/STP mandates registered before October 7, 2025 will continue without changes

Important Dates

  • October 6, 2025: Addendum issued
  • October 7, 2025: Effective date for suspension of fresh subscriptions/switch-ins for three international equity schemes; applications received post-cutoff time will not be processed
  • October 8, 2025: Effective date for Daily SIP minimum instalment modifications and Liquid Fund minimum application amount reduction

Impact Assessment

Positive Impacts:

  • Lower entry barriers for retail investors through reduced Daily SIP minimums (Rs. 10) encourage systematic investing habits
  • Reduced Liquid Fund minimum (Rs. 100 from Rs. 500) makes short-term cash management more accessible to small investors
  • Enhanced digital/online distribution capabilities with micro-investment options

Negative Impacts:

  • Investors lose ability to make fresh investments in three international equity schemes, limiting portfolio diversification options for global exposure
  • Suspension suggests possible capacity constraints, redemption pressures, or strategic reallocation decisions by the AMC
  • Existing investors in suspended schemes may face liquidity concerns if the fund house is managing outflows

Market Implications:

  • Reflects broader trend of AMCs offering micro-SIP facilities to compete for retail investor mindshare
  • Suspension of international equity schemes may indicate challenges in managing foreign equity exposure or regulatory/operational constraints
  • Digital platform investors benefit most from the reduced Daily SIP minimums

Impact Justification

Affects investors in Aditya Birla mutual fund schemes through reduced entry barriers for Liquid Fund and Daily SIP, but suspends fresh subscriptions for three international equity schemes, limiting new investment options.