Description

Bajaj Finserv Asset Management revises minimum application amounts for fresh and additional purchases in two index funds, effective February 2, 2026.

Summary

Bajaj Finserv Asset Management Limited has issued Addendum No. 4 of 2026 revising the minimum application amounts for Bajaj Finserv Nifty 50 Index Fund and Bajaj Finserv Nifty Next 50 Index Fund. The changes will be effective from February 2, 2026, and significantly increase the minimum investment thresholds for fresh purchases, additional purchases, and switch-ins.

Key Points

  • Fresh purchase (lumpsum) minimum increased from Rs. 500 to Rs. 5,000
  • Additional purchase minimum increased from Rs. 100 to Rs. 1,000
  • Switch-in minimum increased from Rs. 500 to Rs. 5,000
  • All amounts continue to be in multiples of Re. 1 thereafter
  • Changes apply to both Bajaj Finserv Nifty 50 Index Fund and Bajaj Finserv Nifty Next 50 Index Fund
  • All other provisions of SID and KIM remain unchanged

Regulatory Changes

This is an addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the affected schemes. The addendum forms an integral part of these documents and updates the minimum investment requirements for investors.

Previous Requirements:

  • Fresh Purchase: Rs. 500 and multiples of Re. 1
  • Additional Purchase (ongoing): Rs. 100 and multiples of Re. 1
  • Switch-in: Rs. 500 and multiples of Re. 1

Revised Requirements:

  • Fresh Purchase: Rs. 5,000 and multiples of Re. 1
  • Additional Purchase (ongoing): Rs. 1,000 and multiples of Re. 1
  • Switch-in: Rs. 5,000 and multiples of Re. 1

Compliance Requirements

  • Investors must adhere to the new minimum application amounts effective from February 2, 2026
  • Distribution channels and intermediaries must update their systems and inform investors of the revised minimums
  • This addendum must be read in conjunction with the existing SID and KIM documents
  • Standard mutual fund disclosure applies: “Mutual Fund investments are subject to market risks, read all scheme related documents carefully”

Important Dates

  • Notice Date: January 29, 2026
  • Effective Date: February 2, 2026
  • BSE Circular Date: January 30, 2026

Impact Assessment

Investor Impact:

  • Existing investors are not affected in terms of their current holdings
  • New investors and those making additional investments will need to meet higher minimum thresholds (10x increase for fresh purchases, 10x for additional purchases)
  • May reduce accessibility for small retail investors seeking to invest in these index funds
  • Could lead to investors considering alternative index funds with lower minimums

Market Impact:

  • Minimal market-wide impact as this affects only two specific mutual fund schemes
  • May result in slightly lower inflow volumes but potentially higher average ticket sizes
  • No impact on stock market trading or listed securities

Operational Impact:

  • Fund house may see reduced transaction volumes but higher per-transaction values
  • Administrative efficiency could improve with fewer small-value transactions

Impact Justification

Administrative change affecting only minimum investment amounts for specific mutual fund schemes; no impact on trading or broader market operations