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 Daily SIP minimum installment amounts to Rs. 10 for equity/hybrid schemes and Rs. 30 for liquid fund, (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.

Key Points

  • Daily SIP minimum reduced to Rs. 10 for Equity and Hybrid Schemes (online/digital platforms only)
  • Daily SIP minimum reduced to Rs. 30 for Aditya Birla Sun Life Liquid Fund
  • Liquid Fund minimum application amount reduced from Rs. 500 to Rs. 100 (Growth option)
  • 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 effective date will continue to be processed
  • 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) of affected schemes. The changes represent operational modifications to investment parameters and scheme availability rather than regulatory mandate changes.

Compliance Requirements

  • Distributors and platforms must update minimum investment amounts for Daily SIP and Liquid Fund
  • Fresh subscription applications for three international equity schemes received after cutoff time on October 7, 2025 must not be processed
  • No new SIP/STP registrations should be accepted for the suspended schemes
  • Existing SIP/STP commitments must continue to be honored for installments registered before the effective date
  • Investment platforms must update scheme documentation to reflect the addendum

Important Dates

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

Impact Assessment

Positive Impact:

  • Increased accessibility for retail investors through significantly lower Daily SIP minimums (Rs. 10 vs previous amounts)
  • Reduced entry barrier for Liquid Fund investments (80% reduction from Rs. 500 to Rs. 100)
  • Democratization of mutual fund investments through digital platforms

Negative Impact:

  • Investors seeking exposure to international equity markets through these three schemes face restricted access
  • New investors cannot enter the suspended international equity schemes, limiting diversification options
  • Possible indication of capacity constraints or strategic repositioning in international equity offerings

Operational Impact:

  • Distributors and platforms need to update investment processing systems
  • Existing commitments under SIP/STP for suspended schemes continue, creating dual processing requirements
  • AMC retains discretion to further modify Daily SIP features, creating potential for future changes

Impact Justification

Affects investors in Aditya Birla mutual fund schemes with lower entry barriers for liquid funds but restricts access to international equity funds. Medium impact as it improves accessibility for some products while limiting others.