Description

HDFC Trustee Company Limited has decided to change the fundamental attributes of HDFC Non-Cyclical Consumer Fund, renaming it to HDFC Consumption Fund with a broader consumption-focused investment mandate.

Summary

HDFC Trustee Company Limited, trustees to HDFC Mutual Fund, has announced a change in the fundamental attributes of HDFC Non-Cyclical Consumer Fund. The scheme will be renamed HDFC Consumption Fund and its investment mandate broadened from a non-cyclical consumer theme to a wider consumption and consumption-related sectors theme.

Key Points

  • Scheme renamed from HDFC Non-Cyclical Consumer Fund to HDFC Consumption Fund
  • Scheme type changes from ‘open ended equity scheme following non-cyclical consumer theme’ to ‘open ended equity scheme following consumption theme’
  • Investment objective broadened to cover ‘consumption and consumption related sector or allied sectors’ instead of strictly non-cyclical consumer companies
  • Minimum allocation to primary theme equity instruments remains 80% of total assets
  • Expanded list of eligible sectors now includes: FMCG, Consumer Non-Durables, Automobile and Auto Components, Telecommunication, Consumer Services, and Media and Entertainment
  • Asset allocation structure revised with updated category definitions

Regulatory Changes

The Scheme Information Document (SID) and Key Information Memorandum (KIM) are being updated to reflect:

  • New scheme name and product labelling
  • Revised investment objective incorporating broader consumption theme
  • Updated asset allocation table with revised instrument categories
  • New investment strategy language replacing non-cyclical consumer focus with consumption and allied sectors focus

Compliance Requirements

  • HDFC Mutual Fund must update the SID and KIM on the BSE StAR MF Platform to reflect the new scheme name and attributes
  • Distributors and intermediaries on BSE StAR MF must update scheme references accordingly
  • Existing investors should review the addendum as this constitutes a change in fundamental attributes, which typically triggers an exit option window under SEBI regulations

Important Dates

  • Circular date: 2026-03-10
  • Effective date for scheme name change on BSE StAR MF Platform: as per BSE notice (refer to full circular for exact effective date)

Impact Assessment

The renaming and mandate broadening of HDFC Non-Cyclical Consumer Fund to HDFC Consumption Fund widens the investable universe for the scheme, potentially allowing fund managers greater flexibility. Existing investors will need to evaluate whether the revised mandate aligns with their investment objectives, particularly given the inclusion of cyclical sectors such as Automobiles and Telecom. As a fundamental attribute change, SEBI norms typically require an exit window to be provided to investors without exit load.

Impact Justification

Scheme rename with broadened investment mandate affects existing and prospective investors in HDFC Non-Cyclical Consumer Fund; no market-wide systemic impact but material for fund investors.