Description

HDFC Mutual Fund resumes fresh SIP registrations in HDFC Defence Fund from December 23, 2025, with monthly frequency limited to ₹5,000 per investor at PAN level, 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 partially modifies the July 08, 2024 addendum that had discontinued lumpsum subscriptions and restricted systematic transactions. Fresh SIPs will only be accepted under monthly frequency with a limit of ₹5,000 per investor aggregated at the first holder PAN level.

Key Points

  • Fresh SIP registrations will be accepted from December 23, 2025
  • SIPs limited to monthly frequency only
  • Maximum SIP amount capped at ₹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 changes
  • No restrictions on redemptions, switch-outs, or STP-outs
  • This addendum is dated December 19, 2025

Regulatory Changes

Partial modification of the July 08, 2024 addendum that had discontinued lumpsum subscriptions and restricted systematic transactions in HDFC Defence Fund. The current change only permits fresh SIP registrations under specific conditions while maintaining restrictions on lumpsum investments.

Compliance Requirements

For Investors:

  • Fresh SIP registrations must comply with monthly frequency requirement
  • SIP amounts must not exceed ₹5,000 per investor at first holder PAN level
  • Lumpsum investments and switch-ins are not permitted

For HDFC Mutual Fund:

  • Must integrate this addendum into the Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • Must process existing systematic transactions as previously committed
  • Must continue to allow redemptions, switch-outs, and STP-outs without restrictions

Important Dates

  • December 19, 2025: Date of addendum
  • December 23, 2025: Effective date for resumption of fresh SIP registrations
  • July 08, 2024: Date of previous addendum that restricted investments (being partially modified)

Impact Assessment

Market Impact: Limited direct market impact as this affects a single mutual fund scheme. The resumption of SIP registrations provides retail investors with renewed access to the defense sector theme through systematic investments.

Investor Impact: Moderate positive impact for retail investors interested in defense sector exposure through SIPs. The ₹5,000 monthly limit per PAN makes this accessible for small investors while managing fund inflows. Investors seeking lumpsum exposure remain restricted.

Operational Impact: HDFC Mutual Fund will need to implement systems to track and enforce the ₹5,000 monthly SIP limit at the first holder PAN level. Existing SIP investors continue unaffected.

Impact Justification

Partial relaxation of investment restrictions for a specific mutual fund scheme affects retail investors but has limited broader market impact