Description

Bank of India Mutual Fund announces changes in minimum installment numbers, multiplier amounts, and minimum application amounts for various schemes, along with introduction of SIP facility in Money Market Fund, effective December 22, 2025.

Summary

National Stock Exchange of India has announced changes in investment parameters for Bank of India Mutual Fund schemes on the NSE MF Invest platform, effective December 22, 2025. The changes include modifications to minimum installment numbers, multiplier amounts, and minimum application amounts for Purchase, Redemption, SIP, STP, and SWP transactions. Additionally, SIP facility is being introduced in Bank of India Money Market Fund.

Key Points

  • STP and SWP installment numbers increased: Daily and Weekly installments now allow up to 30 monthly and 12 quarterly installments (previously 6 monthly and 6 quarterly)
  • Multiplier amount for SIP, STP, and SWP reduced from Rs. 100 to Re. 1 (minimum remains Rs. 1,000)
  • SIP facility introduced in Bank of India Money Market Fund
  • Changes apply to all schemes except Bank of India ELSS Tax Saver and Bank of India Consumption Fund (which already have these parameters)
  • SIP not available in Bank of India Liquid Fund and Bank of India Overnight Fund, but SWP and STP changes apply
  • All changes effective on NSE MF Invest Platform from December 22, 2025

Regulatory Changes

STP and SWP Frequency and Installment Changes:

  • Daily installments: No change in frequency, increased installment flexibility
  • Weekly installments: No change in frequency, increased installment flexibility
  • Monthly: Increased from 6 to 30 installments
  • Quarterly: Increased from 4 to 12 installments
  • Half Yearly: Previously 2 installments (removed for SWP)
  • Annually: Previously 1 installment (removed for SWP)

Transaction Amount Changes:

  • Previous: Rs. 1,000 minimum and multiples of Rs. 100 thereafter
  • Revised: Rs. 1,000 minimum and multiples of Re. 1 thereafter
  • Applicable to: Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), and Systematic Withdrawal Plan (SWP)

Compliance Requirements

  • Members of NSE to note the changes for client transactions on NSE MF Invest platform
  • Investors to be informed of new investment parameter options
  • Notice cum addendum issued by Bank of India Mutual Fund to be referenced
  • Changes to be implemented in trading systems by December 22, 2025

Important Dates

  • Circular Date: December 19, 2025
  • Effective Date: December 22, 2025 - All investment parameter changes and SIP introduction in Money Market Fund become applicable

Impact Assessment

Investor Impact:

  • Greater flexibility in systematic investment planning with Re. 1 multiplier instead of Rs. 100
  • Increased installment options for STP and SWP provide better cash flow management
  • New SIP option in Bank of India Money Market Fund expands investment choices

Operational Impact:

  • Platform updates required on NSE MF Invest to accommodate new parameters
  • Minimal disruption expected as changes are enhancements to existing facilities
  • No impact on equity markets or stock trading

Market Impact:

  • Low overall market impact as changes are administrative in nature
  • May encourage smaller systematic investments through reduced multiplier amounts
  • Limited to Bank of India Mutual Fund schemes on NSE platform

Impact Justification

Routine operational changes to mutual fund investment parameters affecting transaction amounts and frequencies; no direct equity market impact