Description

HDFC Mutual Fund announces scheme name changes, benchmark modifications, and asset allocation updates for Fund of Fund schemes to comply with SEBI's new 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 new “Standardized Framework for Fund of Fund Schemes” dated June 30, 2025. The changes include scheme name modifications, benchmark index updates, and revisions to eligible underlying schemes, all effective from August 30, 2025.

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 35% NIFTY 50 Arbitrage + 60% NIFTY Composite Debt + 5% NIFTY 1D Rate to 40% NIFTY 50 Arbitrage + 60% NIFTY Composite Debt
  • Updated eligible underlying schemes list for HDFC Multi-Asset Active FOF
  • Changes apply to FOFs with multiple underlying schemes for SEBI framework compliance

Regulatory Changes

SEBI’s “Standardized Framework for Fund of Fund Schemes” requires existing FOFs investing in multiple underlying schemes to be re-categorized and aligned with the new framework. This mandates specific benchmark indices and asset allocation patterns for different FOF categories.

Compliance Requirements

  • Fund houses must align existing FOF schemes with the standardized framework
  • Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) require addendum updates
  • Statement of Additional Information (SAI) needs revision to reflect changes
  • Benchmark indices must be selected from SEBI-notified indices for respective scheme categories

Important Dates

  • August 30, 2025: Effective date for all scheme changes
  • June 30, 2025: SEBI framework notification date

Impact Assessment

The changes are primarily administrative to ensure regulatory compliance. Investors in affected schemes will see modified scheme names and benchmark comparisons, but the fundamental investment strategy remains aligned with the schemes’ objectives. The benchmark change for HDFC Income Plus Arbitrage Active FOF simplifies the composition while maintaining appropriate representation of the scheme’s investment mix.

Impact Justification

Administrative changes to comply with SEBI framework affecting fund operations but not creating immediate market disruption