Description

HDFC Mutual Fund resumes fresh SIP registrations in HDFC Defence Fund from December 23, 2025, with monthly frequency up to ₹5,000 per investor, while lumpsum investments remain restricted.

Summary

HDFC Mutual Fund has announced the resumption of fresh Systematic Investment Plan (SIP) registrations in HDFC Defence Fund effective December 23, 2025. This is a partial modification of the earlier addendum dated July 08, 2024 that had discontinued lumpsum subscriptions and restricted systematic transactions. Fresh SIP registrations will be accepted only under monthly frequency with a cap of ₹5,000 per investor aggregated at first holder PAN level.

Key Points

  • Fresh SIP registrations accepted from December 23, 2025
  • SIP allowed only under monthly frequency
  • Maximum SIP amount limited to ₹5,000 per investor (aggregated at first holder PAN level)
  • Fresh lumpsum investments and switch-ins continue to remain restricted
  • Existing systematic transactions will continue to be processed without interruption
  • No restrictions on redemptions, switch-outs, or STP-outs
  • This is an addendum dated December 19, 2025 to the Scheme Information Document (SID) and Key Information Memorandum (KIM)

Regulatory Changes

Partial modification of the earlier addendum dated July 08, 2024 that had imposed comprehensive restrictions on the HDFC Defence Fund. The current change relaxes only the SIP registration restriction while maintaining other investment limitations.

Compliance Requirements

  • Investors must adhere to the monthly SIP frequency requirement
  • Maximum SIP contribution of ₹5,000 per investor will be enforced at the first holder PAN level
  • All existing systematic transactions will be honored
  • Lumpsum investment restrictions remain in force and must be followed

Important Dates

  • Addendum Date: December 19, 2025
  • Effective Date for Fresh SIP Registrations: December 23, 2025
  • Reference to Previous Restriction: July 08, 2024 (original discontinuation addendum)

Impact Assessment

This circular has a moderate positive impact on retail investors interested in the defence sector through mutual funds. The resumption of SIP registrations provides a systematic entry route for small investors, though the ₹5,000 monthly cap limits larger systematic investments. The continuation of lumpsum investment restrictions suggests the fund may still be managing capacity constraints or specific strategic considerations. Existing investors can continue with their systematic transactions and have full flexibility for exits. The impact is primarily operational, affecting investment processes rather than market-wide implications.

Impact Justification

Partial relaxation of investment restrictions for a specific mutual fund scheme, allowing limited SIP registrations while maintaining lumpsum restrictions. Affects retail investors interested in defence sector fund.