Description

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

Summary

Bank of India Mutual Fund (BOIMF) has announced multiple operational changes to its schemes effective December 22, 2025. Key changes include enhanced flexibility in STP/SWP frequencies and installments, reduced transaction amount multiples from Rs. 100 to Re. 1 for systematic transactions, lowered minimum amounts for ELSS Tax Saver (Rs. 1,000 to Rs. 500), Conservative Hybrid Fund (new purchase minimum reduced to Rs. 5,000), and Credit Risk Fund (redemption/switch out minimum reduced to Rs. 1,000). Additionally, monthly SIP facility will be introduced in Bank of India Money Market Fund.

Key Points

  • STP and SWP daily installment limit increased from 6 to 30 for daily frequency
  • SWP quarterly installment limit increased from 4 to 12 installments
  • Systematic transaction multiples reduced from Rs. 100 to Re. 1 for better flexibility
  • Bank of India ELSS Tax Saver minimum purchase/SIP reduced to Rs. 500 (from Rs. 1,000)
  • Bank of India Conservative Hybrid Fund new purchase minimum set at Rs. 5,000
  • Bank of India Credit Risk Fund redemption/switch out minimum reduced to Rs. 1,000
  • New monthly SIP facility introduced in Bank of India Money Market Fund
  • Changes apply to all schemes except where specific facilities already exist or are not offered

Regulatory Changes

No regulatory changes. This is an operational enhancement by the Asset Management Company (AMC) to provide greater flexibility and accessibility to investors across various Bank of India Mutual Fund schemes.

Compliance Requirements

  • Investors should note the revised minimum transaction amounts when placing orders from December 22, 2025
  • Existing SIP/STP/SWP mandates may need to be reviewed if investors wish to utilize new frequency options
  • Scheme Information Documents (SIDs), Key Information Memorandums (KIMs), and Statement of Additional Information (SAI) will be updated accordingly
  • Standard disclaimer applies: “Mutual Fund investments are subject to market risks, read all scheme related documents carefully”

Important Dates

  • Effective Date: December 22, 2025 - All changes in transaction amounts, frequencies, and SIP facility in Money Market Fund become effective

Impact Assessment

Positive Impacts:

  • Improved accessibility for retail investors through lower minimum amounts in ELSS Tax Saver (Rs. 500 vs Rs. 1,000)
  • Greater flexibility with Re. 1 multiples instead of Rs. 100, allowing precise investment amounts
  • Enhanced systematic withdrawal/transfer options with increased installment frequencies
  • Introduction of SIP in Money Market Fund provides additional investment avenue

Investor Impact:

  • Existing investors can continue with current plans or modify to take advantage of new options
  • New investors benefit from lower entry barriers, particularly in ELSS Tax Saver scheme
  • More granular investment control through Re. 1 multiples

Market Impact:

  • Minimal direct market impact as these are operational changes to mutual fund schemes
  • May increase retail participation in Bank of India Mutual Fund schemes due to lower minimums and enhanced flexibility

Impact Justification

Operational changes to mutual fund schemes affecting investor transaction flexibility and minimum amounts, but does not impact market operations or listed securities directly