HDFC Nifty SDL Oct 2026 Index Fund Merger Takes Effect on October 14

Key Takeaways

• HDFC Mutual Fund set October 14, 2026 as the effective date for merging HDFC Nifty SDL Oct 2026 Index Fund into HDFC Banking and PSU Debt Fund. 
• The merger applies to unitholders of the maturing scheme who provided positive consent during the specified consent period. 
• The target-maturity fund had approximately ₹176.71 crore in AUM as of September 30, 2026. 

HDFC Mutual Fund's planned merger of the HDFC Nifty SDL Oct 2026 Index Fund into the HDFC Banking and PSU Debt Fund takes effect on October 14, coinciding with the target-maturity scheme's maturity. 

HDFC Trustee Company approved the merger with October 14, 2026 as the effective date, or the next business day if the date were not a business day. SEBI had issued its no-objection to the proposal on August 14. 

The merging scheme was designed to replicate the Nifty SDL Oct 2026 Index and had reached the end of its predetermined maturity period. 

HDFC provided unitholders who wished to continue through the merger with a positive-consent window running from September 11 to October 13, 2026, up to 5:30 pm on the final day. Unitholders of the surviving HDFC Banking and PSU Debt Fund were separately given an exit window over the prescribed period. 

The target-maturity scheme had assets of approximately ₹176.71 crore as of September 30, shortly before maturity. 

HDFC said the merger would allow consenting investors in the maturing scheme to continue their investment through a portfolio predominantly consisting of securities issued by scheduled commercial banks, public-sector undertakings, public financial institutions, municipal corporations and other eligible bodies. 

The fund house also stated that the structure was intended to avoid forcing a capital-gains event solely because the target-maturity scheme had reached maturity. The actual tax treatment applicable to any investor remains governed by prevailing tax rules and individual circumstances. 

No change to the fundamental provisions of the surviving HDFC Banking and PSU Debt Fund was proposed as part of the merger.