Description

NSE circular announcing changes in minimum application amounts and introduction of new facilities including SIP for Kotak Liquid Fund and Kotak Overnight Fund, effective December 16, 2025.

Summary

National Stock Exchange has informed members about changes in minimum application amounts and the introduction of new investment facilities for Kotak Liquid Fund and Kotak Overnight Fund on the NSE MF Invest platform. The changes include increased minimum application amounts and the introduction of SIP and related facilities, effective December 16, 2025.

Key Points

  • Minimum application amount (Non-SIP) increased from Rs. 100/- to Rs. 1,000/-
  • Minimum additional purchase amount increased from Rs. 100/- to Rs. 500/-
  • New Systematic Investment Plan (SIP) facility introduced with minimum Rs. 500/- per installment
  • SIP available in multiple frequencies: Daily, Weekly, Monthly, Quarterly, Half-Yearly, and Annually
  • Minimum 2 installments required for SIP
  • Additional facilities introduced: SIP Top-Up, SIP Pause, Freedom SIP, and Systematic Transfer Plan
  • Changes apply to both Kotak Liquid Fund and Kotak Overnight Fund

Regulatory Changes

Kotak Mahindra Asset Management Company Limited has modified the investment parameters for two debt schemes:

Kotak Liquid Fund (An open-ended liquid scheme with relatively low interest rate risk and moderate credit risk)

Kotak Overnight Fund (An open-ended debt scheme investing in overnight securities with relatively low interest rate risk and relatively low credit risk)

The changes represent a ten-fold increase in minimum application amount for non-SIP purchases and a five-fold increase for additional purchases.

New Facilities Introduced

  1. Systematic Investment Plan (SIP): Available with frequencies ranging from daily to annual, with minimum installment of Rs. 500/- and minimum 2 installments. SIP dates can be chosen between 1st and 31st of the selected frequency.

  2. SIP Top-Up Facility: Allows investors to increase SIP installment amounts by a fixed sum at predefined intervals.

  3. SIP Pause Facility: Enables temporary suspension of SIP for a specified period.

  4. Freedom SIP Facility: Combined SIP cum SWP (Systematic Withdrawal Plan) for a specified duration.

  5. Systematic Transfer Plan: Allows switching of fixed amounts between schemes within Kotak Mahindra Mutual Fund.

Compliance Requirements

  • NSE members must update their systems to reflect the new minimum application amounts
  • All terms and conditions applicable to other eligible schemes of Kotak Mahindra Mutual Fund for the new facilities shall also apply to these schemes
  • The addendum forms an integral part of the Scheme Information Document (SID)/Key Information Memorandum (KIM)/Statement of Additional Information (SAI)
  • All other terms and conditions in existing scheme documents remain unchanged

Important Dates

  • Effective Date: December 16, 2025
  • Circular Date: December 16, 2025
  • Circular Reference: NSE/NMFTM/71825, Circular Ref. No: 1064/2025
  • SIP transactions on non-Business Days will be processed on the next Business Day

Impact Assessment

The changes have limited market-wide impact but affect retail investors in these specific mutual fund schemes:

Investor Impact: The higher minimum application amounts may create a barrier for very small investors who previously could invest as little as Rs. 100/-. However, the introduction of SIP facilities provides more flexibility for systematic investment.

Product Impact: The addition of SIP and related facilities modernizes these liquid and overnight fund offerings, bringing them in line with equity and other debt schemes that already offer such features.

Market Impact: Minimal impact on broader market operations. This is an administrative change specific to two debt schemes on the NSE MF Invest platform.

Operational Impact: Members and distributors will need to update their systems and educate investors about the new minimum amounts and available facilities.

Impact Justification

Administrative change affecting minimum investment amounts for specific mutual fund schemes. Limited impact on broader market operations, primarily affects retail investors in these specific schemes.