HDFC Mutual Fund has announced a change in the fundamental attributes of the HDFC Non-Cyclical Consumer Fund, which will be renamed HDFC Consumption Fund with effect from March 11, 2026.
Following the change, the scheme will operate as an open-ended equity fund with a consumption theme, aiming to generate long-term capital appreciation by investing in equity and equity-related securities of companies focused on the consumption and consumption-related sectors, as well as allied sectors.
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Under the revised mandate, the fund will allocate 80–100% of its assets to equity and equity-related instruments of companies in the consumption and consumption-related or allied sectors. Up to 20% may be invested in equity and equity-related instruments of companies outside the consumption theme, while allocations of 0–10% are permitted in units of InvITs. The scheme may also invest 0–20% each in debt securities, money market instruments and fixed income derivatives, as well as units of mutual funds.
Previously, the fund was required to maintain at least 80% exposure to non-cyclical consumer stocks. Under the new framework, it will instead construct a portfolio with a minimum 80% exposure to the broader consumption theme.
The indicative list of sectors under the consumption and consumption-related or allied categories includes FMCG, consumer non-durables, automobiles and auto components, telecommunications, consumer services, media and entertainment, consumer durables, textiles, healthcare, power, and realty/hotels.
In line with regulatory requirements, on account of the change in fundamental attributes being proposed, the fund house is offering an exit window of 30 days to existing unit holders from February 9 to March 10 (both days inclusive).
During the exit option period, unit holders not consenting to the change may either switch to any other scheme of HDFC Mutual Fund or redeem their units at applicable Net Asset Value without payment of exit load, if any, subject to provisions of applicable cut-off time as stated in the Scheme Information Document (SID) of the Scheme. All redemption / switch out requests received on or after March 10, 2026 post 3.00 PM will be subject to applicable exit load (if any), under the scheme.
Investors who have registered for Systematic Investment Plan (SIP) in the Scheme and who do not wish to continue their future investments must apply for cancellation of their SIP registrations.
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Redemption / switch-out of units from the scheme may entail capital gain/loss in the hands of the unitholder. For unit holders who redeem their investments during the exit option period, the tax consequences as set forth in the Statement of Additional Information of HDFC Mutual Fund and Scheme Information Document of Scheme of HDFC Mutual Fund would be applicable.
In case of NRI investors, TDS shall be deducted from the redemption proceeds in accordance with the prevailing income tax laws. In view of the individual nature of tax consequences, Unitholders are advised to consult their professional tax advisors for tax advice.
A separate written communication, containing the prescribed information in this regard is being sent to the existing Unit holders of the scheme.
Following the change, the scheme will operate as an open-ended equity fund with a consumption theme, aiming to generate long-term capital appreciation by investing in equity and equity-related securities of companies focused on the consumption and consumption-related sectors, as well as allied sectors.
Also Read | Equity and MF share in household savings jumps from 2% to 15%, SIP contribution soar 7x: Economic Survey
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Under the revised mandate, the fund will allocate 80–100% of its assets to equity and equity-related instruments of companies in the consumption and consumption-related or allied sectors. Up to 20% may be invested in equity and equity-related instruments of companies outside the consumption theme, while allocations of 0–10% are permitted in units of InvITs. The scheme may also invest 0–20% each in debt securities, money market instruments and fixed income derivatives, as well as units of mutual funds.
Previously, the fund was required to maintain at least 80% exposure to non-cyclical consumer stocks. Under the new framework, it will instead construct a portfolio with a minimum 80% exposure to the broader consumption theme.
The indicative list of sectors under the consumption and consumption-related or allied categories includes FMCG, consumer non-durables, automobiles and auto components, telecommunications, consumer services, media and entertainment, consumer durables, textiles, healthcare, power, and realty/hotels.
In line with regulatory requirements, on account of the change in fundamental attributes being proposed, the fund house is offering an exit window of 30 days to existing unit holders from February 9 to March 10 (both days inclusive).
During the exit option period, unit holders not consenting to the change may either switch to any other scheme of HDFC Mutual Fund or redeem their units at applicable Net Asset Value without payment of exit load, if any, subject to provisions of applicable cut-off time as stated in the Scheme Information Document (SID) of the Scheme. All redemption / switch out requests received on or after March 10, 2026 post 3.00 PM will be subject to applicable exit load (if any), under the scheme.
Investors who have registered for Systematic Investment Plan (SIP) in the Scheme and who do not wish to continue their future investments must apply for cancellation of their SIP registrations.
Also Read | Gold is talking, silver is screaming: Is it time to rebalance your precious metal investments?
Redemption / switch-out of units from the scheme may entail capital gain/loss in the hands of the unitholder. For unit holders who redeem their investments during the exit option period, the tax consequences as set forth in the Statement of Additional Information of HDFC Mutual Fund and Scheme Information Document of Scheme of HDFC Mutual Fund would be applicable.
In case of NRI investors, TDS shall be deducted from the redemption proceeds in accordance with the prevailing income tax laws. In view of the individual nature of tax consequences, Unitholders are advised to consult their professional tax advisors for tax advice.
A separate written communication, containing the prescribed information in this regard is being sent to the existing Unit holders of the scheme.
