Description

HDFC Mutual Fund resumes accepting fresh SIP registrations in HDFC Defence Fund with monthly frequency up to ₹5,000 per investor, effective December 23, 2025.

Summary

HDFC Mutual Fund has issued an addendum to partially modify the restrictions on HDFC Defence Fund. Effective December 23, 2025, the fund will resume accepting fresh SIP registrations under monthly frequency only, with a limit of ₹5,000 per investor aggregated at first holder PAN level. This partially reverses the July 08, 2024 addendum that had discontinued lumpsum subscriptions and restricted systematic transactions.

Key Points

  • Fresh SIP registrations will be accepted from December 23, 2025
  • SIPs allowed only under monthly frequency
  • Maximum SIP amount: ₹5,000 per investor (aggregated at first holder PAN level)
  • Fresh lumpsum investments and switch-ins remain restricted
  • Existing systematic transactions will continue to be processed normally
  • No restrictions on redemptions, switch-outs, or STP-outs
  • Addendum dated December 19, 2025

Regulatory Changes

This is a scheme-level operational change rather than a regulatory mandate. HDFC Mutual Fund is exercising its right to manage inflows into the HDFC Defence Fund by selectively resuming SIP registrations while maintaining restrictions on lumpsum investments.

Compliance Requirements

  • Investors wishing to register fresh SIPs must ensure monthly frequency selection
  • SIP amount must not exceed ₹5,000 per investor at first holder PAN level
  • Fund distributors and platforms must implement these restrictions in their systems
  • The addendum forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM)

Important Dates

  • Addendum Date: December 19, 2025
  • Effective Date: December 23, 2025 (resumption of fresh SIP registrations)
  • Reference: July 08, 2024 addendum (original restrictions imposed)

Impact Assessment

Market Impact: Minimal. This affects only one mutual fund scheme and does not impact equity market operations or listed securities.

Investor Impact: Low to medium for retail investors interested in HDFC Defence Fund. While SIP access is restored, the ₹5,000 monthly limit is restrictive for investors seeking higher exposure. Existing investors can continue their systematic transactions without changes.

Operational Impact: Fund houses and distribution platforms need to update their systems to allow fresh SIP registrations while enforcing the monthly frequency and amount limits. The continued restriction on lumpsum investments indicates ongoing capital management concerns for this thematic fund.

Impact Justification

Limited operational change affecting only one mutual fund scheme with restrictive SIP limits; does not impact broader market operations or listed securities