MUTUAL FUNDS
HDFC AMC introduces Chhoti SIP Facility
Apr-17-2025

HDFC Asset Management Company (AMC) has announced addendum to the Scheme Information Documents (SIDs) / Key Information Memorandums (KIMs) of select Schemes and Statement of Additional Information (SAI) of HDFC Mutual Fund.

HDFC Mutual Fund has informed that it has decided to introduce Chhoti SIP facility (‘the facility’) in accordance with SEBI Letter No. SEBI/HO/IMD/PoD-1/OW/P/2025/5586/1 dated February 20, 2025 for investments under the Growth Option of Eligible Schemes of the Fund effective April 16, 2025 (‘Effective Date’). Chhoti SIP will help promote financial inclusion, inculcate the habit of systematic saving and facilitate investment of small savings by investors new to the Mutual fund industry, by sachetisation of Mutual Funds.

The features of the facility are as follows: - 1. The facility will be available only to first-time individual investors to the industry excluding minors and will be restricted to three SIPs (one each in upto 3 Asset Management Companies) (‘Chhoti SIP’). Investor who initiates any SIP other than Chhoti SIP or makes lumpsum investment shall not be considered as a Chhoti SIP investor for any subsequent investments at industry level. However, SIPs that were Chhoti SIP at the time of investment shall continue as Chhoti SIP.

2. The facility will be available under Growth option of HDFC Flexi Cap Fund, HDFC Balanced Advantage Fund and HDFC Large Cap Fund (‘Eligible Schemes’) with only monthly frequency. 

3. The ticket size of the SIP registered under Eligible Schemes under this facility will be exactly equal to Rs. 250/- SIP with minimum commitment of 60 instalments. 

4. Payment mode can only be through Unified Payment Interface (UPI) or National Automated Clearing House (NACH) only. 

5. No transaction charges will be deducted for Chhoti SIPs. 

6. All statutory disclosures to unitholders of Chhoti SIPs shall be through a valid and registered mobile number. The same can also be made over email ID, if provided. 

7. AII statutory disclosures to unitholders of Chhoti SIPs shall be through SMS/WhatsApp on a valid and registered mobile number and email id (if provided by the investor). The link shall remain active for atleast three months for an investor to download the disclosures made thereunder.

The AMC reserves the right to modify list of Eligible Schemes from time to time. All other terms and conditions of the aforesaid Eligible Schemes shall remain unchanged. It may be noted that the features of the facility are subject to guidelines and terms and conditions as notified by SEBI/ AMFI from time to time. 

This addendum shall form an integral part of the SID / KIM of the Eligible Schemes and SAI of the Fund as amended from time to time.


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