Description

HDFC Mutual Fund announces changes to Fund of Fund scheme names, benchmarks, and underlying schemes to align with SEBI's standardized framework effective August 30, 2025.

Summary

HDFC Mutual Fund has announced changes to select Fund of Fund (FOF) schemes to align with SEBI’s “Standardized Framework for Fund of Fund Schemes” effective August 30, 2025. The changes include scheme name modifications, benchmark revisions, and updates to eligible underlying schemes.

Key Points

  • HDFC Developed World Equity Passive FOF renamed to HDFC Developed World Overseas Equity Passive FOF
  • HDFC Income Plus Arbitrage Active FOF benchmark changed from complex multi-index to simplified 40% NIFTY 50 Arbitrage Index + 60% NIFTY Composite Debt Index
  • Revised list of eligible underlying schemes for HDFC Multi-Asset Active FOF
  • Changes effective from August 30, 2025

Regulatory Changes

SEBI’s “Standardized Framework for Fund of Fund Schemes” dated June 30, 2025 requires existing FOFs investing in multiple underlying schemes to be aligned/re-categorized. The framework mandates standardization of scheme attributes including naming conventions and benchmark indices.

Compliance Requirements

  • Mutual funds must align existing FOF schemes with the new framework
  • Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) require addendums
  • Statement of Additional Information (SAI) updates needed
  • Benchmark indices must be selected from those notified for the scheme category

Important Dates

  • August 30, 2025: Effective date for all scheme changes
  • June 30, 2025: Date of SEBI’s Standardized Framework notification

Impact Assessment

The changes are primarily administrative to ensure regulatory compliance. Investors in affected schemes will see updated scheme names and benchmark references but the underlying investment strategy remains aligned with the scheme objectives. The simplified benchmark for HDFC Income Plus Arbitrage Active FOF provides clearer performance tracking for investors.

Impact Justification

Routine compliance changes to align with new SEBI framework affecting multiple HDFC Fund of Fund schemes