HDFC Defence Fund changes SIP rules again: Here’s what MF investors can now do

The fund house said it will now allow higher fresh registrations under Systematic Investment Plans (SIPs) and introduce fresh Systematic Transfer Plan (STP) registrations, both capped at ₹25,000 per investor at the first holder PAN level. The revised limits will come into effect from May 4, 2026.

This update partially modifies the earlier addendum dated December 19, 2025, which had addressed the resumption of SIP registrations in the scheme. Under the new framework, the ₹25,000 cap applies separately to SIP and STP investments and is over and above any existing systematic investments already held by investors.

Despite the relaxation in systematic routes, the fund house has retained key restrictions. Fresh lump sum investments, including switch-ins, will continue to remain suspended. However, existing SIPs and STPs will be processed without any change.

Additionally, investors will continue to have full flexibility on exits, as there are no restrictions on redemptions, switch-outs, or STP-out transactions from the scheme.

The AMC said in the addendum that, “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 first holder PAN level with effect from May 04, 2026.”

It further clarified that “the limit of ₹25,000 applies to SIP and STP both separately which is in addition to any ongoing SIP/STP by the investor.”

However, certain restrictions remain unchanged. The addendum states that “fresh lump sum investments, including switch-ins, will remain paused.” At the same time, “existing systematic transactions will continue to be processed,” and there will be “no restrictions on redemptions, switch-outs, or STP-outs.”

The AMC clarified that all other provisions of the scheme remain unchanged, and the addendum will form an integral part of the SID and KIM, as updated from time to time.