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 partially modified its earlier restrictions on HDFC Defence Fund by resuming fresh SIP registrations effective December 23, 2025. Fresh SIPs are now permitted only under monthly frequency with a limit of ₹5,000 per investor aggregated at first holder PAN level. Lumpsum investments including switch-ins continue to remain restricted. This addendum modifies the earlier circular dated July 08, 2024 that had discontinued lumpsum subscriptions and restricted systematic transactions.

Key Points

  • Fresh SIP registrations resumed from December 23, 2025
  • Only monthly frequency SIPs allowed
  • Maximum investment limit: ₹5,000 per investor per month
  • Investment limit aggregated at first holder PAN level
  • Fresh lumpsum investments and switch-ins remain restricted
  • Existing systematic transactions will continue to be processed without changes
  • No restrictions on redemptions, switch-outs, or STP-outs

Regulatory Changes

This is a partial modification of the addendum dated July 08, 2024 which had discontinued lumpsum subscriptions and imposed restrictions on systematic transactions under HDFC Defence Fund. The current addendum relaxes the restriction on fresh SIP registrations while maintaining other limitations.

Compliance Requirements

For Investors:

  • Fresh SIP registrations must be for monthly frequency only
  • Individual investment per SIP installment cannot exceed ₹5,000
  • Aggregate SIP amount is tracked at first holder PAN level
  • Lumpsum investment restrictions must be adhered to

For HDFC Mutual Fund:

  • Process fresh SIP registrations from December 23, 2025
  • Monitor and enforce ₹5,000 monthly limit per investor
  • Continue processing existing systematic transactions
  • Update Scheme Information Document (SID) and Key Information Memorandum (KIM)

Important Dates

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

Impact Assessment

Investor Impact: Moderate positive impact for retail investors seeking to invest in HDFC Defence Fund through systematic investment plans. The ₹5,000 monthly limit makes it accessible for small retail investors while preventing large inflows. Investors seeking lumpsum exposure remain unable to invest fresh amounts.

Market Impact: Limited market impact as the scheme maintains restrictions on lumpsum investments. The controlled SIP inflows help the fund manager regulate asset size and maintain investment strategy without significant portfolio disruptions.

Operational Impact: The fund continues to manage subscription flows to ensure alignment with investment strategy and market opportunities in the defence sector. The PAN-level aggregation ensures the limit cannot be circumvented through multiple folios.

Impact Justification

Affects investors interested in HDFC Defence Fund by partially lifting SIP restrictions, but maintains lumpsum investment restrictions. Limited impact due to investment cap of ₹5,000 per month.