Description

Axis Mutual Fund revises minimum application amounts for lumpsum, additional purchases, and SIP transactions across four debt schemes effective November 14, 2025.

Summary

Axis Mutual Fund has announced revisions to minimum application amounts for four debt schemes on the BSE StAR MF platform, effective November 14, 2025. The changes significantly reduce entry barriers by lowering lumpsum purchase minimums from Rs. 5,000 to Rs. 100 and monthly SIP minimums from Rs. 1,000 to Rs. 100 across Axis Ultra Short Duration Fund, Axis Treasury Advantage Fund, Axis Money Market Fund, and Axis Short Duration Fund.

Key Points

  • Minimum lumpsum and additional purchase amount reduced from Rs. 5,000 to Rs. 100 for all four schemes
  • Minimum monthly SIP amount reduced from Rs. 1,000 to Rs. 100
  • Changes apply to both Growth and IDCW options
  • Minimum number of SIP installments remains unchanged at 6
  • All multiples continue to be Re. 1/-
  • Changes effective from November 14, 2025

Affected Schemes

Schemes with Revised Investment Amounts:

  1. Axis Ultra Short Duration Fund
  2. Axis Treasury Advantage Fund
  3. Axis Money Market Fund
  4. Axis Short Duration Fund

Previous Requirements:

  • Lumpsum Purchase: Rs. 5,000 and multiples of Re. 1/-
  • Additional Purchase: Rs. 1,000 and multiples of Re. 1/- (for Treasury Advantage, Money Market, and Short Duration Funds)
  • Monthly SIP: Rs. 1,000 and multiples of Re. 1/-

Revised Requirements:

  • Lumpsum and Additional Purchase: Rs. 100 and multiples of Re. 1/-
  • Monthly SIP: Rs. 100 and multiples of Re. 1/-

Regulatory Changes

This is an operational change to scheme terms rather than a regulatory mandate. The notice-cum-addendum forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the affected schemes. All other terms and conditions remain unchanged.

Compliance Requirements

  • Investors should note the revised minimum application amounts when making fresh investments or additional purchases
  • The changes apply to switch-in transactions as well
  • Distributors and intermediaries should update their systems and inform investors about the revised investment thresholds
  • Existing SIPs and investments are not affected

Important Dates

  • Circular Date: November 11, 2025
  • Effective Date: November 14, 2025

Impact Assessment

Positive Impacts:

  • Significantly improved accessibility for retail investors with lower capital
  • 95% reduction in minimum investment amounts makes debt funds more inclusive
  • Enables smaller investors to diversify across multiple debt schemes
  • Facilitates easier portfolio construction with lower ticket sizes

Operational Impact:

  • Minor system updates required for distributors and platforms
  • Potential increase in transaction volumes with lower minimums
  • No impact on existing investors or ongoing SIPs

Market Impact:

  • Could attract new retail investors to debt mutual funds
  • Aligns with industry trend of democratizing mutual fund investments
  • May increase Assets Under Management (AUM) through broader participation

Impact Justification

Operational change affecting mutual fund investors with significantly reduced minimum investment amounts, making schemes more accessible but not impacting broader market operations or compliance requirements