Description
HDFC Mutual Fund announces change in scheme name from HDFC Non-Cyclical Consumer Fund to HDFC Consumption Fund, along with revised investment objective, asset allocation, and strategy to broaden focus from non-cyclical consumer theme to wider consumption theme.
Summary
HDFC Trustee Company Limited, trustees to HDFC Mutual Fund, has issued an Addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of HDFC Non-Cyclical Consumer Fund announcing changes to the scheme’s Fundamental Attributes. The scheme will be renamed to HDFC Consumption Fund and its investment mandate broadened from a narrow non-cyclical consumer theme to a wider consumption and consumption-related sector focus.
Key Points
- Scheme name changes from HDFC Non-Cyclical Consumer Fund to HDFC Consumption Fund
- Scheme type revised from ‘open ended equity scheme following non-cyclical consumer theme’ to ‘open ended equity scheme following consumption theme’
- Investment objective broadened to include equity/equity related securities of companies with focus on consumption and consumption-related or allied sectors
- Minimum allocation to core theme equity instruments remains at 80% of total assets
- Expanded list of eligible sectors now includes FMCG, Consumer Non-Durables, Automobile & Auto Components, Telecommunication, Consumer Services, and Media & Entertainment
- BSE StAR MF platform will reflect the updated scheme name
Regulatory Changes
The following Fundamental Attributes of the scheme stand revised per the SID/KIM addendum:
| Particular | Existing | Proposed |
|---|---|---|
| Name | HDFC Non-Cyclical Consumer Fund | HDFC Consumption Fund |
| Scheme Type | Non-cyclical consumer theme | Consumption theme |
| Investment Objective | Equity securities with non-cyclical consumer focus | Equity securities with consumption and allied sector focus |
| Core Allocation | Non-Cyclical Consumer Companies (80–100%) | Consumption & related sector companies (80–100%) |
The asset allocation structure is maintained with up to 10% in InvITs, up to 20% in Debt/Money Market instruments, and up to 20% in Units of Mutual Fund.
Compliance Requirements
- Existing investors in HDFC Non-Cyclical Consumer Fund should review the revised SID/KIM to understand the change in investment mandate
- Investors who do not wish to remain invested under the new broader consumption theme may exercise their exit option as per SEBI regulations governing fundamental attribute changes
- Distributors and intermediaries on BSE StAR MF platform must update their references to the scheme’s new name
Important Dates
- Circular date: 10 March 2026
- Effective date of name and attribute change: Not explicitly stated in the provided content; investors should refer to the complete addendum for the effective date and exit window period
Impact Assessment
The change broadens the investment universe of the scheme from a narrower non-cyclical consumer basket to a wider consumption theme encompassing automobiles, telecom, and media sectors in addition to FMCG and consumer services. Existing unitholders will experience a shift in the fund’s character and risk-return profile. The minimum 80% allocation to the core consumption theme is retained, preserving the thematic nature of the fund. The renaming on BSE StAR MF platform will require operational updates for distributors and platform participants.
Impact Justification
Scheme renaming and fundamental attribute changes affect existing investors in HDFC Non-Cyclical Consumer Fund by broadening the investment mandate, but does not directly impact listed equities or trading operations.