Description

Bajaj Mutual Fund revises minimum installment requirements for SIP investments, reducing from 60 to 6 instalments for amounts between Rs. 500-1,000, effective December 18, 2025.

Summary

National Stock Exchange of India Limited has notified members about changes to the minimum application amount and installment number requirements for Systematic Investment Plans (SIP) in three Bajaj Mutual Fund schemes on the NSE MF Invest platform. The changes, effective December 18, 2025, significantly reduce the minimum installment requirement from 60 to 6 instalments for investments between Rs. 500 to Rs. 1,000, making SIP investments more flexible for retail investors.

Key Points

  • Three Bajaj Finserv Mutual Fund schemes affected: Flexi Cap Fund, Arbitrage Fund, and Balanced Advantage Fund
  • Previous requirement: Rs. 500 to Rs. 1,000 required minimum 60 instalments; Above Rs. 1,000 required minimum 6 instalments
  • Revised requirement: Rs. 500 and above now requires only minimum 6 instalments across all amount ranges
  • Changes apply to Purchase, Additional purchase, and Systematic Investment Plan (SIP) transactions
  • All other provisions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) remain unchanged
  • Notice cum addendum issued by Bajaj Mutual Fund forms integral part of SID and KIM

Regulatory Changes

The change simplifies and standardizes the minimum installment requirements for SIP investments across all investment amounts. Previously, smaller investments (Rs. 500-1,000) were locked into 60-month commitments, while larger investments could be completed in just 6 months. The new structure removes this disparity by applying the 6-installment minimum uniformly regardless of investment amount.

Compliance Requirements

  • NSE members must update their systems to reflect the revised minimum application amounts and installment numbers
  • The changes must be implemented on the NSE MF Invest platform effective December 18, 2025
  • Members should inform investors about the revised investment parameters for the affected schemes
  • All scheme documentation (SID and KIM) must incorporate Addendum No. 51 of 2025

Important Dates

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

Impact Assessment

Positive Impact: This change significantly improves accessibility and flexibility for retail investors, particularly those investing smaller amounts through SIP. By reducing the minimum commitment from 60 instalments (5 years) to 6 instalments (6 months) for amounts between Rs. 500-1,000, investors have greater flexibility to enter and exit SIP investments. This could potentially increase participation in these mutual fund schemes.

Market Impact: Limited to participants in Bajaj Finserv Flexi Cap Fund, Arbitrage Fund, and Balanced Advantage Fund on the NSE MF Invest platform. No impact on stock markets or broader trading operations.

Operational Impact: NSE members and the platform will need to update their systems to accommodate the new parameters, though this is a straightforward configuration change with one day’s notice before implementation.

Impact Justification

Operational change affecting mutual fund investment parameters for specific Bajaj schemes, making SIP more accessible by reducing minimum installment requirements but limited to retail investors