Minimum Additional Investment

Minimum Additional Investment (MAI) refers to the lowest amount an existing investor in a mutual fund scheme can invest in subsequent transactions — after the initial investment has already been made and the folio is established. The MAI is typically lower than the minimum initial investment threshold — for example, a scheme may require ₹5,000 for the first investment but permit additional purchases from ₹1,000 onwards. This tiered structure encourages investor participation by reducing the barrier for top-up investments once the initial account relationship is established. In India, SEBI-regulated mutual fund schemes must disclose their minimum investment amounts — including the minimum additional investment — in the Scheme Information Document (SID) and Key Information Memorandum (KIM). Most equity mutual funds in India set minimum additional investments between ₹1,000 and ₹5,000, while debt and liquid funds may have higher thresholds for lump sum additional investments. For investors using the top-up or Step-Up SIP facility, the minimum incremental amount per step-up is also governed by AMC-specific policies. Understanding the MAI is particularly relevant for investors who receive irregular cash flows — such as annual bonuses or business income — and wish to make opportunistic additional investments into existing fund folios when markets correct.