Description

Bajaj Finserv Mutual Fund revises minimum SIP investment requirements for Flexi Cap Fund, Arbitrage Fund, and Balanced Advantage Fund, removing the 60-installment requirement for investments up to Rs. 1,000.

Summary

Bajaj Finserv Asset Management Limited has announced changes to the minimum application amount and installment requirements for Systematic Investment Plans (SIP) in three of its mutual fund schemes: Bajaj Finserv Flexi Cap Fund, Bajaj Finserv Arbitrage Fund, and Bajaj Finserv Balanced Advantage Fund. The revised provisions simplify SIP requirements by eliminating the 60-installment minimum for investments between Rs. 500 to Rs. 1,000, standardizing all SIPs at a minimum of 6 installments regardless of amount.

Key Points

  • Minimum SIP amount remains Rs. 500 across all three schemes
  • Previous requirement of 60 minimum installments for investments between Rs. 500-1,000 has been removed
  • New uniform requirement: minimum 6 installments for all SIP amounts of Rs. 500 and above
  • Changes apply to Bajaj Finserv Flexi Cap Fund, Bajaj Finserv Arbitrage Fund, and Bajaj Finserv Balanced Advantage Fund
  • All other provisions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) remain unchanged
  • This addendum forms an integral part of the SID and KIM for the affected schemes

Regulatory Changes

Previous SIP Requirements:

  • Rs. 500 to Rs. 1,000: minimum 60 installments
  • Above Rs. 1,000: minimum 6 installments

Revised SIP Requirements:

  • Rs. 500 and above: minimum 6 installments (uniform across all amounts)

This change makes smaller SIP investments more accessible by reducing the commitment period for investors starting with amounts up to Rs. 1,000.

Compliance Requirements

  • Investors should note the revised minimum installment requirements when setting up new SIPs
  • Existing SIPs are expected to continue under their original terms unless modified
  • Investors should read all scheme-related documents carefully before investing
  • The addendum must be read in conjunction with the existing SID and KIM documents

Important Dates

  • Circular Issue Date: December 17, 2025
  • Effective Date: December 18, 2025

Impact Assessment

Investor Impact:

  • Positive impact for small investors as the barrier to entry is lowered
  • Greater flexibility for retail investors wanting to start SIPs with smaller amounts
  • Reduced long-term commitment requirement (from 60 months to 6 months for investments up to Rs. 1,000)

Market Impact:

  • Minimal market impact as this is an administrative change specific to three Bajaj Finserv Mutual Fund schemes
  • May encourage increased retail participation in systematic investment plans
  • Aligns with market trends of making mutual fund investing more accessible

Operational Impact:

  • No significant operational changes for existing investors
  • New SIP registrations from December 18, 2025 will follow revised norms

Impact Justification

Administrative change reducing minimum installment requirements for small SIP investments, making mutual fund investing more flexible for retail investors. Does not affect trading operations or compliance obligations.