Description

Kotak Mahindra AMC introduces SIP facilities and revises minimum application amounts for Kotak Liquid Fund and Kotak Overnight Fund effective December 16, 2025.

Summary

Kotak Mahindra Asset Management Company Limited has announced the introduction of multiple Systematic Investment Plan (SIP) facilities and revised minimum application amounts for Kotak Liquid Fund and Kotak Overnight Fund, effective December 16, 2025. The changes include introduction of SIP, SIP Top-Up, SIP Pause, Freedom SIP, and Systematic Transfer Plan facilities, along with an increase in minimum application amounts from Rs.100 to Rs.1000 for non-SIP purchases and from Rs.100 to Rs.500 for additional purchases.

Key Points

  • Introduction of SIP facility with flexible frequencies (Daily, Weekly, Monthly, Quarterly, Half-Yearly, Annually)
  • Minimum SIP installment amount: Rs.500 with minimum 2 installments
  • SIP date can be chosen between 1st and 31st of selected frequency
  • New facilities: SIP Top-Up, SIP Pause, Freedom SIP, and Systematic Transfer Plan
  • Minimum Application Amount (Non-SIP) increased from Rs.100 to Rs.1000
  • Minimum Additional Purchase Amount increased from Rs.100 to Rs.500
  • Changes apply to both Kotak Liquid Fund and Kotak Overnight Fund
  • All other terms in SID/KIM/SAI remain unchanged

Regulatory Changes

No regulatory changes. This is an operational modification by the fund house to its scheme features and investment parameters within the existing regulatory framework.

Compliance Requirements

  • Fund house to update Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI)
  • This addendum forms an integral part of the scheme documents
  • Investors must be informed of the revised minimum application amounts
  • BSE StAR MF platform to implement the changes effective December 16, 2025

Important Dates

  • Notice Date: December 11, 2025
  • Effective Date: December 16, 2025 - All new facilities and revised minimum amounts become applicable

Impact Assessment

Investor Impact: The increase in minimum application amounts from Rs.100 to Rs.1000 (non-SIP) and Rs.500 (additional purchases) may affect small retail investors but remains accessible. The introduction of SIP facilities with Rs.500 minimum per installment provides flexibility for systematic investors.

Operational Impact: The addition of multiple SIP variants (Top-Up, Pause, Freedom SIP) and Systematic Transfer Plan enhances investor options and aligns these schemes with features available in other Kotak Mahindra Mutual Fund schemes.

Market Impact: Minimal broader market impact as these are scheme-specific operational changes affecting only investors in these two liquid/overnight funds on the BSE StAR MF platform.

Impact Justification

Routine operational changes to mutual fund schemes affecting minimum investment amounts and introduction of standard SIP facilities. Limited impact on broader market participants.