Description

ICICI Prudential Mutual Fund discontinues fresh IDCW option subscriptions through lump sum and systematic plans across 42 Index and FOF schemes effective November 3, 2025.

Summary

ICICI Prudential Mutual Fund has announced the discontinuation of fresh subscriptions in the Income Distribution Cum Capital Withdrawal (IDCW) option across 42 Index and Fund of Funds (FOF) schemes effective November 3, 2025. This applies to all investment modes including lump sum (including switches), fresh SIP registrations, STP registrations, and special facilities like Freedom SIP, SIP Top Up, Booster SIP, Flex STP, Booster STP, and Capital Appreciation STP. Existing systematic transaction installments registered before the effective date will continue to be processed.

Key Points

  • Fresh subscriptions in IDCW option discontinued across 42 schemes (26 Index funds and 16 FOF schemes)
  • Applies to lump sum investments, switches, and new systematic plan registrations (SIP/STP)
  • Special products affected: Freedom SIP, SIP Top Up, Booster SIP, Flex STP, Booster STP, Capital Appreciation STP
  • Existing systematic transactions registered before November 3, 2025 will continue to be honored
  • Approved by ICICI Prudential Trust Limited (Trustee)
  • Affects popular schemes including Nifty 50, Sensex, NASDAQ 100, and various sectoral index funds

Affected Schemes

Index Funds (25 schemes):

  1. ICICI Prudential BSE Sensex Index Fund
  2. ICICI Prudential CRISIL-IBX Financial Services 3-6 Months Debt Index Fund
  3. ICICI Prudential NASDAQ 100 Index Fund
  4. ICICI Prudential Nifty 200 Momentum 30 Index Fund
  5. ICICI Prudential Nifty 50 Index Fund
  6. ICICI Prudential Nifty 500 Index Fund
  7. ICICI Prudential Nifty Auto Index Fund
  8. ICICI Prudential Nifty Bank Index Fund
  9. ICICI Prudential Nifty G-Sec Dec 2030 Index Fund
  10. ICICI Prudential Nifty IT Index Fund
  11. ICICI Prudential Nifty LargeMidcap 250 Index Fund
  12. ICICI Prudential Nifty Midcap 150 Index Fund
  13. ICICI Prudential Nifty Next 50 Index Fund
  14. ICICI Prudential Nifty Pharma Index Fund
  15. ICICI Prudential Nifty Private Bank Index Fund
  16. ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund
  17. ICICI Prudential Nifty SDL Dec 2028 Index Fund
  18. ICICI Prudential Nifty SDL Sep 2026 Index Fund
  19. ICICI Prudential Nifty SDL Sep 2027 Index Fund
  20. ICICI Prudential Nifty Smallcap 250 Index Fund
  21. ICICI Prudential Nifty Top 15 Equal Weight Index Fund
  22. ICICI Prudential Nifty200 Quality 30 Index Fund
  23. ICICI Prudential Nifty200 Value 30 Index Fund
  24. ICICI Prudential Nifty50 Equal Weight Index Fund
  25. ICICI Prudential Nifty50 Value 20 Index Fund

Fund of Funds (17 schemes): 26. ICICI Prudential Asset Allocator Fund (FOF) 27. ICICI Prudential Bharat 22 FOF 28. ICICI Prudential BSE 500 ETF FOF 29. ICICI Prudential Debt Management Fund (FOF) 30. ICICI Prudential Global Advantage Fund (FOF) 31. ICICI Prudential Global Stable Equity Fund (FOF) 32. ICICI Prudential Income plus Arbitrage Active FOF 33. ICICI Prudential India Equity FOF 34. ICICI Prudential Nifty 100 Low Volatility 30 ETF FOF 35. ICICI Prudential Nifty Alpha Low - Volatility 30 ETF FOF 36. ICICI Prudential Nifty EV & New Age Automotive ETF FOF 37. ICICI Prudential Passive Multi-Asset Fund of Fund 38. ICICI Prudential Passive Strategy Fund (FOF) 39. ICICI Prudential Regular Gold Savings Fund (FOF) 40. ICICI Prudential Silver ETF Fund of Fund 41. ICICI Prudential Strategic Metal and Energy Equity Fund of Fund 42. ICICI Prudential Thematic Advantage Fund (FOF)

Regulatory Changes

This notice-cum-addendum modifies the Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) of the affected schemes. The change represents a strategic decision by the AMC to streamline investment options, likely encouraging investors toward growth/accumulation options rather than dividend payout options in passive investment products.

Compliance Requirements

  • Investors seeking fresh investments in these schemes must use options other than IDCW
  • Distributors and intermediaries must update their systems to block fresh IDCW subscriptions from November 3, 2025
  • Existing IDCW investors with registered systematic plans before the effective date can continue their investments
  • The AMC will continue processing existing SIP/STP/systematic transaction installments as per original registration terms

Important Dates

  • Effective Date: November 3, 2025 - Discontinuation of fresh IDCW subscriptions begins
  • Cut-off: Systematic plans registered before November 3, 2025 will continue to be processed

Impact Assessment

Investor Impact:

  • New investors cannot opt for IDCW (dividend) option in these 42 schemes; must choose growth or other available options
  • Existing IDCW investors with systematic plans registered before November 3, 2025 are unaffected
  • Reduces flexibility for investors preferring regular income through dividends from index and FOF schemes

Market Impact:

  • Likely to shift investor preference toward growth options in passive investment products
  • Aligns with industry trend of promoting long-term wealth accumulation over periodic dividend distribution
  • May reduce operational complexity for the AMC in managing dividend payouts across multiple passive schemes

Operational Impact:

  • AMC simplifies product offerings by limiting IDCW option availability
  • Reduces administrative burden of processing dividend distributions in passive investment schemes
  • Existing systematic transaction processing continues, maintaining service continuity for current investors

Impact Justification

Affects investor participation in 42 mutual fund schemes by discontinuing fresh IDCW subscriptions, but existing systematic investments continue. Medium impact as it limits new investor options in dividend payout mode while growth option remains available.