Description

HDFC Mutual Fund resumes accepting 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 under HDFC Defence Fund effective December 23, 2025. This partially modifies the addendum dated July 08, 2024 which had discontinued lumpsum subscriptions and restricted systematic transactions. Fresh SIPs will only be accepted under monthly frequency with a cap of ₹5,000 per investor aggregated at first holder PAN level.

Key Points

  • Fresh SIP registrations will be accepted from December 23, 2025
  • SIPs permitted only under monthly frequency
  • Investment limit: Up 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 changes
  • No restrictions on redemptions, switch-outs, or STP-outs
  • This is a partial modification of the July 08, 2024 addendum

Regulatory Changes

This addendum modifies the previous restrictions imposed on HDFC Defence Fund through the July 08, 2024 addendum. The modification represents a partial relaxation by allowing controlled fresh SIP inflows while maintaining restrictions on lumpsum investments.

Compliance Requirements

  • Investors must comply with the monthly SIP frequency requirement
  • Investment amounts must not exceed ₹5,000 per investor at first holder PAN level
  • AMC must ensure aggregation and monitoring at PAN level
  • This 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 for Fresh SIP Registrations: December 23, 2025
  • Reference to Previous Restriction: July 08, 2024 addendum

Impact Assessment

Investor Impact: Retail investors seeking exposure to the defence sector through HDFC Defence Fund can now resume SIP investments with limited monthly contributions. The ₹5,000 monthly cap allows small retail participation while controlling fund inflows.

Fund Management Impact: The partial reopening suggests improved fund management capacity to handle controlled inflows through systematic routes. The restriction on lumpsum investments indicates the AMC’s continued focus on managing fund size and liquidity.

Market Impact: Limited market impact as this affects only one mutual fund scheme with capped contribution limits. The continued restriction on lumpsum investments suggests ongoing concerns about fund capacity or sector concentration.

Impact Justification

Moderate impact as it partially relaxes previous restrictions on HDFC Defence Fund by allowing limited SIP registrations, affecting retail investors but with investment caps