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/global schemes effective October 7-8, 2025.

Summary

Aditya Birla Sun Life Mutual Fund has issued Addendum No. 40/2025 announcing three key changes: (1) modification of Daily SIP minimum instalment amounts for online and digital platforms, (2) reduction in minimum application amount for Liquid Fund Growth option from Rs. 500 to Rs. 100, and (3) suspension of fresh subscriptions and switch-ins for three international/global equity schemes effective October 7-8, 2025. Existing SIP/STP registrations in suspended schemes will continue to be processed.

Key Points

  • Daily SIP minimum instalment reduced to Rs. 10 for Equity and Hybrid Schemes (Rs. 30 for Liquid Fund) for online/digital platforms effective October 8, 2025
  • Aditya Birla Sun Life Liquid Fund minimum application amount reduced from Rs. 500 to Rs. 100 (Growth option) effective October 8, 2025
  • Fresh subscriptions and switch-ins suspended for three schemes: International Equity Fund, Global Emerging Opportunities Fund, and Global Excellence Equity Fund of Fund from October 7, 2025
  • No new SIP/STP registrations accepted for suspended schemes; existing SIPs/STPs registered before effective date will continue
  • AMC reserves right to modify Daily SIP features and restrict applicable schemes from time to time

Regulatory Changes

Daily SIP Modification (Effective October 8, 2025):

  • Equity and Hybrid Schemes: Rs. 10 minimum instalment (multiples of Re. 1)
  • Aditya Birla Sun Life Liquid Fund: Rs. 30 minimum instalment (multiples of Re. 1)
  • Applies only to Daily SIPs through online mode and digital platforms

Liquid Fund Application Amount (Effective October 8, 2025):

  • Previous: Rs. 500 minimum (multiples of Re. 1)
  • Revised: Rs. 100 minimum (multiples of Re. 1)
  • Applies to Growth option

Subscription Suspension (Effective October 7, 2025):

  • Aditya Birla Sun Life International Equity Fund
  • Aditya Birla Sun Life Global Emerging Opportunities Fund
  • Aditya Birla Sun Life Global Excellence Equity Fund of Fund

Compliance Requirements

For Investors:

  • Fresh subscription/switch-in applications received post cutoff timing on October 7, 2025 will not be processed for the three suspended schemes
  • No fresh SIP/STP registrations will be accepted for suspended schemes with installments falling on or after October 7, 2025
  • Existing SIP/STP registrations made prior to October 7, 2025 will continue to be honored

For Distributors/Platforms:

  • Update minimum investment amounts for Daily SIP and Liquid Fund across systems
  • Discontinue acceptance of fresh applications for the three international/global schemes
  • Continue processing existing systematic transactions registered before effective date

Documentation:

  • This addendum forms integral part of SAI, SID, and KIM of affected schemes
  • All other terms and conditions remain unchanged

Important Dates

  • October 6, 2025: Addendum issued from Mumbai
  • October 7, 2025: Effective date for suspension of fresh subscriptions in three international/global schemes
  • October 8, 2025: Effective date for Daily SIP modifications and Liquid Fund minimum application amount reduction
  • Post-cutoff October 7, 2025: Applications for suspended schemes will not be processed

Impact Assessment

Positive Impacts:

  • Lower entry barriers make mutual fund investments more accessible to retail investors with reduced Daily SIP minimums (Rs. 10-30)
  • Liquid Fund minimum reduced by 80% (Rs. 500 to Rs. 100), enabling smaller investors to participate
  • Encourages systematic investment discipline through affordable daily contributions

Negative Impacts:

  • Investors seeking exposure to international and global emerging markets face restricted access to three schemes
  • Suspension suggests possible capacity constraints or strategic repositioning in international equity offerings
  • Existing investors cannot increase exposure through fresh subscriptions or switch-ins

Market Implications:

  • AMC may be managing fund size or portfolio composition in international schemes
  • Trend toward democratization of mutual fund access through lower minimums continues
  • Digital and online platforms incentivized through reduced Daily SIP amounts
  • Investors seeking international diversification must explore alternative schemes or fund houses

Impact Justification

Affects existing and potential investors in Aditya Birla mutual fund schemes with reduced entry barriers for Liquid Fund but restricted access to international schemes; operational changes to SIP facilities impact retail investor participation