HDFC Defence Fund Rule Changes: HDFC Mutual Fund has raised the minimum amount for new SIP registrations in the HDFC Defence Fund and has also limited fresh STP registrations to Rs 25,000, effective May 4. Here’s what investors should know.
HDFC Asset Management Company (AMC) has tightened the rules for new investments in its scheme HDFC Defence Fund. It has now been decided to increase the amount of fresh SIP registrations and also allow fresh STP registrations only under the monthly frequency for up to Rs 25,000 per investor at the first holder PAN level.
Revised Investment Limits: Tightening of SIP and STP rules
SIP registration: The monthly SIP registration limit for new investors has been increased. It’s worth noting that this limit, which was Rs 5,000 in December 2025, has now been revised to Rs 10,000.
Cap on STP: The fund house has imposed a cap of Rs 25,000 per month on investments made through Systematic Transfer Plan (STP).
Monthly option only: New STP registrations will now be accepted only under the monthly frequency. Other frequency options, such as weekly or daily, have been discontinued for new registrations.
Prohibition on lump sum investments: The restrictions on fresh lump sum investments in the fund and switching from other schemes will continue as before.
HDFC Defence Fund Rule Changes: Relief for old investors
These changes are applicable only to new registrations. Existing SIPs and STPs will continue unaffected, and investors can proceed with their scheduled transactions as usual.
Also, there are no restrictions on redemptions or exits from the scheme, including switches out or STP-outs.
HDFC Defence Fund is the only actively managed fund in the country that is completely focused on defence and allied sectors.
Portfolio: As of March 31, 2026, the fund held 22 stocks, with 50.38 per cent in large-cap companies and 25.14 per cent in small-cap companies.
Fund Size (AUM): The fund’s assets under management (AUM) stood at Rs 7,304 crore at the end of March.
Returns: This fund has delivered strong returns to investors. As of March 31, the fund’s one-year return was 27.10 per cent, while since inception, it has generated an impressive annualised return of 39.98 per cent.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
