Description

HDFC Mutual Fund schemes merger effective September 25, 2025 with 30-day exit load waiver period for investors.

Summary

NSE has announced the merger of certain HDFC Mutual Fund schemes effective September 25, 2025. The merger includes HDFC FMP 1158D July 2022 - Series 46 into HDFC Banking and PSU Debt Fund. Investors have a 30-day exit load waiver period from August 26 to September 24, 2025 to redeem or switch schemes without penalty.

Key Points

  • Merger effective date: September 25, 2025
  • Exit load waiver period: August 26 to September 24, 2025 (30 days)
  • Existing SIP/XSIP/SWP will continue processing during exit load period
  • Merging schemes will cease to exist after September 24, 2025
  • SIP/XSIP/STP/SWP registrations will transfer to surviving schemes
  • Subscription transactions acceptance till 2:30 PM on September 24, 2025
  • Tax efficiency benefits for unitholders who consent to merger

Regulatory Changes

No new regulatory changes introduced. This is a fund management restructuring under existing mutual fund regulations.

Compliance Requirements

  • NSE members must inform clients about the merger
  • Investors wishing to exit must do so within the 30-day window to avoid exit load
  • Fund house to process all redemption and switch requests during the specified period
  • Automatic transfer of systematic plans to surviving schemes post-merger

Important Dates

  • August 25, 2025: Circular announcement date
  • August 26, 2025: Start of exit load waiver period
  • September 24, 2025: Last day for exit load waiver (2:30 PM cutoff for subscriptions)
  • September 25, 2025: Merger effective date

Impact Assessment

Medium impact on HDFC Mutual Fund investors who need to decide whether to continue with merged schemes or exit. The merger provides tax efficiency benefits but requires active decision-making during the 30-day window. Systematic investment plans will continue uninterrupted but will be transferred to surviving schemes post-merger.

Impact Justification

Affects HDFC Mutual Fund investors with specific merger timeline and exit options