Description

Bajaj Finserv Mutual Fund revises minimum SIP application requirements for Flexi Cap, Arbitrage, and Balanced Advantage Funds, reducing minimum instalments from 60 to 6 for amounts Rs. 500-1,000, effective December 18, 2025.

Summary

Bajaj Finserv Asset Management Limited has revised the minimum application amount and instalment requirements for Systematic Investment Plans (SIP) in three mutual fund schemes: Bajaj Finserv Flexi Cap Fund, Bajaj Finserv Arbitrage Fund, and Bajaj Finserv Balanced Advantage Fund. The changes simplify SIP requirements by establishing a uniform minimum of 6 instalments for all SIP amounts of Rs. 500 and above, replacing the previous two-tier structure. This modification is effective from December 18, 2025.

Key Points

  • Minimum SIP amount remains Rs. 500 across all three affected schemes
  • Previous requirement: Rs. 500 to Rs. 1,000 needed minimum 60 instalments; above Rs. 1,000 needed minimum 6 instalments
  • Revised requirement: All SIP amounts of Rs. 500 and above require only minimum 6 instalments
  • Applies to Bajaj Finserv Flexi Cap Fund, Bajaj Finserv Arbitrage Fund, and Bajaj Finserv Balanced Advantage Fund
  • This is Addendum No. 51 of 2025 to the Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • All other provisions of the SID and KIM remain unchanged

Regulatory Changes

This is an administrative change to mutual fund scheme documentation rather than a regulatory mandate. The addendum modifies the Scheme Information Document and Key Information Memorandum for the three specified schemes. The change aligns the minimum instalment requirements across different investment amount tiers, simplifying the SIP structure for investors.

Compliance Requirements

  • Investors can now initiate SIPs with amounts between Rs. 500 and Rs. 1,000 with only 6 instalments instead of the previous 60 instalments
  • The addendum forms an integral part of the updated SID and KIM documents
  • Investors should read all scheme-related documents carefully before investing
  • Standard mutual fund risk disclosures apply: investments are subject to market risks

Important Dates

  • Notice Date: December 17, 2025
  • Effective Date: December 18, 2025

Impact Assessment

This change has a positive but limited impact on retail investors. By reducing the minimum number of instalments from 60 to 6 for smaller SIP amounts (Rs. 500-1,000), Bajaj Finserv makes these mutual fund schemes more accessible and flexible for small investors who may not want to commit to a 5-year SIP period. The simplified structure also makes it easier for investors to understand and compare SIP options. There is no impact on market operations, trading activities, or existing investments. The change affects only new SIP registrations from December 18, 2025 onwards.

Impact Justification

Administrative change in mutual fund SIP requirements affecting investor convenience but not market operations or trading activities. Primarily beneficial for small retail investors.