Description

HDFC Mutual Fund has resumed accepting fresh SIP registrations in HDFC Defence Fund with effect from December 23, 2025, limited to monthly frequency up to ₹5,000 per investor at first holder PAN level.

Summary

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

Key Points

  • Fresh SIP registrations accepted from December 23, 2025
  • Only monthly frequency SIPs permitted
  • 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 interruption
  • 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 AMC has partially modified its earlier restrictions on HDFC Defence Fund subscriptions. The July 08, 2024 addendum had imposed restrictions on new investments, which are now being relaxed specifically for SIP registrations under defined limits.

Compliance Requirements

For Investors:

  • Fresh SIP registrations must comply with the ₹5,000 monthly limit per investor at first holder PAN level
  • Only monthly SIP frequency is available for new registrations
  • Lumpsum investments and switch-ins remain unavailable

For Distributors and Platforms:

  • Must configure systems to accept only monthly SIPs up to ₹5,000 per investor
  • Need to aggregate limits at first holder PAN level
  • Continue blocking fresh lumpsum and switch-in transactions

Important Dates

  • December 19, 2025: Addendum date
  • December 23, 2025: Effective date for resumption of fresh SIP registrations
  • July 08, 2024: Date of original addendum imposing restrictions (referenced for context)

Impact Assessment

Market Impact: Minimal - affects only retail investors interested in the HDFC Defence Fund, a thematic sector fund

Investor Impact: Low to moderate for retail investors - provides limited avenue for fresh investments in the scheme through small monthly SIPs while maintaining overall investment caps to manage fund size

Operational Impact: Minor - fund houses and platforms need to enable SIP registrations with prescribed limits while maintaining existing restrictions on lumpsum investments

Fund Management: The continued restriction on lumpsum investments suggests the fund manager wants to control asset growth and manage liquidity, allowing only gradual inflows through small SIPs

Impact Justification

Affects only a specific mutual fund scheme with limited SIP resumption under strict caps; existing investors and redemptions unaffected; niche impact on retail investors interested in defence sector fund