Description

Kotak Mahindra Mutual Fund 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 introduced new Systematic Investment Plan (SIP) facilities and revised minimum application amounts for Kotak Liquid Fund and Kotak Overnight Fund on the BSE StAR MF platform, effective December 16, 2025. The minimum application amount (non-SIP) has been increased from Rs. 100 to Rs. 1,000, and the minimum additional purchase amount has been raised from Rs. 100 to Rs. 500.

Key Points

  • SIP facility introduced with minimum 2 installments of Rs. 500 each
  • SIP frequencies available: Daily, Weekly, Monthly, Quarterly, Half-Yearly, and Annually
  • SIP date can be chosen between 1st and 31st of the selected frequency
  • New SIP Top-Up Facility allows investors to increase installment amounts at predefined intervals
  • SIP Pause Facility enables temporary suspension of SIP for a specified period
  • Freedom SIP Facility combines SIP and SWP for specified duration
  • Systematic Transfer Plan enables switching fixed amounts between Kotak MF schemes
  • Minimum application amount (non-SIP) increased from Rs. 100 to Rs. 1,000
  • Minimum additional purchase amount increased from Rs. 100 to Rs. 500

Regulatory Changes

No regulatory changes. This is an operational modification by the fund house to introduce new investor facilities and adjust minimum investment thresholds for two specific schemes.

Compliance Requirements

  • Investors must comply with new minimum application amounts effective December 16, 2025
  • Non-SIP purchases must be minimum Rs. 1,000 (previously Rs. 100)
  • Additional purchases must be minimum Rs. 500 (previously Rs. 100)
  • SIP investments must be minimum Rs. 500 per installment with at least 2 installments
  • All other terms and conditions in existing SID/KIM/SAI remain unchanged

Important Dates

  • Effective Date: December 16, 2025 - New SIP facilities and revised minimum application amounts come into effect
  • Notice Date: December 11, 2025 - Date of official notice issuance

Impact Assessment

Investor Impact: The increased minimum application amounts may affect small retail investors who previously invested amounts below Rs. 1,000. However, the introduction of SIP facilities with Rs. 500 installments provides an alternative for smaller investors to participate systematically.

Market Impact: Minimal to no impact on broader market operations. Changes are specific to two Kotak Mahindra Mutual Fund schemes (Kotak Liquid Fund and Kotak Overnight Fund) and affect only investors in these schemes.

Operational Impact: The new SIP facilities (Top-Up, Pause, Freedom SIP, and Systematic Transfer Plan) provide enhanced flexibility and convenience for investors managing their mutual fund investments on the BSE StAR MF platform.

Schemes Affected:

  • Kotak Liquid Fund (open-ended liquid scheme with relatively low interest rate risk and moderate credit risk)
  • Kotak Overnight Fund (open-ended debt scheme investing in overnight securities with relatively low interest rate risk and relatively low credit risk)

Impact Justification

Operational changes to mutual fund facilities and minimum amounts affecting only investors in specific Kotak MF schemes; no broader market impact