Description

Aditya Birla Sun Life Mutual Fund modifies Daily SIP minimum amounts, revises Liquid Fund application amounts, and suspends fresh subscriptions in 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 to its mutual fund schemes: (1) reduction in minimum Daily SIP instalment amounts for equity/hybrid schemes to Rs. 10 and Liquid Fund to Rs. 30, (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 equity schemes effective October 7, 2025.

Key Points

  • Daily SIP minimum instalment reduced to Rs. 10 for Equity and Hybrid Schemes (online mode and digital platforms)
  • Daily SIP minimum instalment for Liquid Fund set at Rs. 30 (online mode and digital platforms)
  • Liquid Fund Growth option minimum application amount reduced from Rs. 500 to Rs. 100
  • Fresh subscriptions suspended for Aditya Birla Sun Life International Equity Fund, Global Emerging Opportunities Fund, and Global Excellence Equity Fund of Fund
  • Existing SIP/STP registrations made before effective date will continue to be processed
  • No new SIP/STP registrations accepted for suspended schemes from effective date

Regulatory Changes

Daily SIP Modifications (Effective October 8, 2025):

  • Equity and Hybrid Schemes: Rs. 10 and multiples of Re. 1 thereafter
  • Liquid Fund: Rs. 30 and multiples of Re. 1 thereafter
  • Applies only to Daily SIP through online mode and digital platforms
  • AMC reserves right to modify features and restrict applicable schemes

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

  • Previous: Rs. 500 and multiples of Re. 1
  • Revised: Rs. 100 and multiples of Re. 1
  • Applies to Growth option only

Compliance Requirements

For Investors:

  • Fresh subscription/switch-in applications in three international schemes received post cut-off time on October 7, 2025 will not be processed
  • No fresh SIP/STP registrations accepted for suspended schemes from October 7, 2025
  • Existing SIP/STP installments registered before October 7, 2025 will continue as scheduled

For Fund Manager:

  • Update SAI (Statement of Additional Information), SID (Scheme Information Document), and KIM (Key Information Memorandum)
  • Process existing systematic transactions for suspended schemes if registered before effective date

Important Dates

  • October 7, 2025 (Tuesday): Effective date for suspension of fresh subscriptions in three international equity schemes
  • October 8, 2025 (Wednesday): Effective date for Daily SIP modifications and Liquid Fund minimum application amount change
  • October 6, 2025: Date of circular issuance

Impact Assessment

Positive Impacts:

  • Lower entry barriers for retail investors with reduced minimum SIP amounts (Rs. 10 for equity/hybrid schemes)
  • Increased accessibility to Liquid Fund with lower minimum application amount (Rs. 100)
  • Enhanced affordability for small investors using digital platforms

Negative Impacts:

  • Investors unable to make fresh investments in three international equity schemes
  • No new systematic investment plans allowed for suspended international funds
  • Potential signal of capacity constraints or portfolio rebalancing in international schemes

Market Implications:

  • Suspension suggests possible fund size management or regulatory considerations for international equity schemes
  • Reduced minimums may increase retail participation in domestic equity and liquid fund schemes
  • Existing investors in suspended schemes unaffected; redemptions and switches-out likely still permitted

Operational Impact:

  • Limited to Aditya Birla Sun Life Mutual Fund schemes
  • Does not affect other mutual fund houses
  • Changes applicable through BSE StAR MF platform and digital channels

Impact Justification

Affects investors in Aditya Birla mutual fund schemes with changes to minimum investment amounts and suspension of new subscriptions in three international funds, but existing investments and SIPs registered before effective date continue normally.