Description

Zerodha Mutual Fund reduces minimum daily SIP instalment amount from ₹100 to ₹10 for Zerodha Nifty LargeMidcap 250 Index Fund, effective August 06, 2025.

Summary

Zerodha Mutual Fund has issued Addendum No. 05/2025-26 revising the minimum Systematic Investment Plan (SIP) amount for daily frequency in the Zerodha Nifty LargeMidcap 250 Index Fund. The minimum daily SIP instalment amount has been reduced from ₹100 to ₹10, effective August 06, 2025. This change is implemented on the BSE StAR MF platform and makes daily SIP investments more accessible to retail investors.

Key Points

  • Minimum daily SIP instalment amount reduced from ₹100 to ₹10
  • Change applies to Zerodha Nifty LargeMidcap 250 Index Fund only
  • Daily SIP frequency minimum instalment count remains at 1
  • Addendum forms integral part of the Scheme Information Document (SID)
  • All other terms and conditions of the scheme remain unchanged
  • Investment Manager: Zerodha Asset Management Private Limited (CIN: U67190KA2021PTC155726)
  • Trustee: Zerodha Trustee Private Limited (CIN: U67100KA2021PTC155537)
  • Sponsor: Zerodha Broking Limited

Regulatory Changes

This is an operational change to the Scheme Information Document (SID) rather than a regulatory mandate. The addendum modifies the minimum investment threshold for daily SIP frequency, making the scheme more accessible to small investors. The change follows standard mutual fund disclosure requirements where material modifications to scheme parameters must be communicated to investors through formal addendums.

Compliance Requirements

  • Investors and unitholders are required to take note of the revised minimum SIP amount
  • The addendum must be read in conjunction with the existing SID of Zerodha Nifty LargeMidcap 250 Index Fund
  • Standard mutual fund disclaimer applies: “MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY”
  • No action required from existing investors; change applies automatically to new SIP registrations

Important Dates

  • Addendum Issue Date: August 06, 2025
  • Effective Date: August 06, 2025
  • Circular Publication Date: October 10, 2025

Impact Assessment

Positive Impact on Retail Accessibility: The 90% reduction in minimum daily SIP amount (from ₹100 to ₹10) significantly lowers the entry barrier for small retail investors and makes disciplined daily investing more accessible. This could potentially increase participation in index fund investing among micro-investors.

Market Operations: The change is limited to BSE StAR MF platform operations for this specific scheme and does not affect broader market operations or other mutual fund schemes.

Competitive Positioning: This positions Zerodha Mutual Fund as one of the most accessible fund houses for daily SIP investors, potentially attracting younger and first-time investors to systematic investing.

No Impact on Existing Investors: Current unitholders are not required to take any action; the change primarily benefits new investors looking to start daily SIPs with smaller amounts.

Impact Justification

While this affects investor accessibility by reducing minimum SIP amounts, it is specific to one mutual fund scheme and represents an operational change rather than a market-wide regulatory shift. Medium impact due to increased retail investor accessibility.