Description

Bank of India Mutual Fund announces changes in transaction amounts, frequencies, and installments for SIP, STP, and SWP across various schemes, and introduces SIP facility in Money Market Fund, effective December 22, 2025.

Summary

Bank of India Mutual Fund (BOIMF) has announced comprehensive changes to transaction parameters across its schemes effective December 22, 2025. Key changes include: (1) Enhanced STP and SWP installment frequencies - daily and weekly STP installments increased to 6 each, monthly SWP to 30 and quarterly to 12; (2) Reduced transaction multiples for SIP/STP/SWP from Rs. 100 to Re. 1 after minimum Rs. 1,000; (3) Reduced minimum purchase amounts for ELSS Tax Saver and Conservative Hybrid Fund from Rs. 1,000 to Rs. 500, and Credit Risk Fund new purchase from Rs. 10,000 to Rs. 5,000 and redemption from Rs. 5,000 to Rs. 1,000; (4) Introduction of monthly SIP facility in Money Market Fund with minimum Rs. 1,000.

Key Points

  • STP and SWP installment limits increased: Daily and weekly STP installments increased from 6 to 6 each; Monthly SWP installments increased from 6 to 30; Quarterly SWP from 4 to 12
  • Transaction amount multiples reduced from Rs. 100 to Re. 1 for SIP, STP, and SWP (after minimum Rs. 1,000) across all schemes
  • Bank of India ELSS Tax Saver minimum investment reduced from Rs. 1,000 to Rs. 500 (in multiples of Rs. 500)
  • Bank of India Conservative Hybrid Fund new purchase minimum reduced from Rs. 10,000 to Rs. 5,000
  • Bank of India Credit Risk Fund minimum new purchase reduced from Rs. 10,000 to Rs. 5,000; redemption/switch out minimum reduced from Rs. 5,000 to Rs. 1,000
  • Monthly SIP facility introduced in Bank of India Money Market Fund with minimum Rs. 1,000
  • Changes apply to all schemes except ELSS Tax Saver and Consumption Fund which already had these features
  • SIP changes not applicable to Liquid Fund and Overnight Fund (no SIP facility currently offered)
  • SWP and STP changes applicable to Liquid Fund and Overnight Fund

Regulatory Changes

This is an operational amendment to Scheme Information Documents (SIDs), Key Information Memorandums (KIMs), and Statement of Additional Information (SAI) of Bank of India Mutual Fund schemes. The changes are voluntarily implemented by the AMC to enhance investor flexibility and accessibility. No new regulatory mandates are indicated in this notice.

Compliance Requirements

Investors and unitholders should:

  • Review the revised transaction parameters for their specific schemes
  • Update any existing SIP/STP/SWP instructions if they wish to take advantage of new lower minimums or enhanced frequency options
  • Consult the updated scheme documents (SIDs, KIMs, SAI) for complete details
  • Note scheme-specific exclusions (Liquid Fund, Overnight Fund for SIP; schemes already having these features)

Important Dates

  • Effective Date: December 22, 2025 - All changes in transaction amounts, frequencies, and new SIP facility in Money Market Fund become effective
  • Notice Date: December 19, 2025 (Notice-cum-Addendum No. 33/2025-26)

Impact Assessment

Positive Impacts:

  • Increased accessibility: Lower minimum investment amounts (Rs. 500 for ELSS, Rs. 5,000 for Conservative Hybrid and Credit Risk Fund) make schemes more accessible to retail investors
  • Enhanced flexibility: Re. 1 multiples (vs Rs. 100 previously) allow precise investment amounts
  • Better liquidity management: Increased SWP/STP installment frequencies provide more options for systematic withdrawals and transfers
  • New investment avenue: SIP facility in Money Market Fund opens systematic investment option in liquid asset class

Investor Considerations:

  • Existing investors with automated transactions should verify if changes affect their current instructions
  • Lower barriers to entry may attract new retail investors to mutual fund investment
  • Enhanced frequency options beneficial for investors seeking regular income or portfolio rebalancing strategies

Impact Justification

Operational changes to mutual fund schemes affecting transaction flexibility and minimum amounts; medium impact for existing and potential investors in Bank of India Mutual Fund schemes