Description

Mahindra Manulife Mutual Fund announces change in nomenclature of IDCW options for Aggressive Hybrid Fund and Equity Savings Fund, adding frequency specifications (Monthly/Quarterly) effective November 3, 2025.

Summary

Mahindra Manulife Mutual Fund has announced changes to the nomenclature of Income Distribution Cum Capital Withdrawal (IDCW) options for two of its schemes. The Board of AMC and Trustee Company approved adding frequency specifications (Monthly/Quarterly) to existing IDCW option names for Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund, effective November 3, 2025.

Key Points

  • Affected Schemes: Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund
  • Change Type: Addition of frequency specification to IDCW option names
  • Aggressive Hybrid Fund: IDCW Option renamed to “Monthly IDCW Option” with record date on 7th of every month
  • Equity Savings Fund: IDCW Option renamed to “Quarterly IDCW Option” with record date on third Friday of March, June, September, and December
  • Both Plans Affected: Changes apply to both Regular Plan and Direct Plan options
  • Facilities Maintained: Both IDCW Payout and IDCW Reinvestment facilities continue to be available
  • Delegation Authority: Trustees can delegate IDCW declaration up to monthly frequency to AMC officials including CEO, subject to specific conditions

Regulatory Changes

New delegation framework introduced for IDCW declaration:

  1. Record dates specified in offer document must be adhered to
  2. Delegation to AMC officials must include CEO and make him responsible for IDCW declaration
  3. Policy must specify appropriate parameters or factors for deciding quantum
  4. Actual IDCW declared must be ratified by Trustees in immediately following Board meeting

This framework will be incorporated in the Scheme Information Document (SID) under the IDCW Policy section.

Compliance Requirements

  • Fund House: Update Scheme Information Documents (SID) and Key Information Memorandum (KIM) to reflect new nomenclature
  • Investors: No action required; change is administrative in nature
  • Documentation: Addendum No. 39/2025 forms integral part of SID and KIM, overriding any conflicting provisions

Important Dates

  • Effective Date: November 3, 2025
  • Aggressive Hybrid Fund Record Date: 7th of every month (or next business day if non-business day)
  • Equity Savings Fund Record Date: Third Friday of March, June, September, and December (or next business day if non-business day)
  • Note: AMC/Trustees reserve the right to change record dates from time to time

Impact Assessment

Market Impact: Negligible. This is a nomenclature change that clarifies the frequency of IDCW distribution without altering the fundamental structure or operation of the schemes.

Investor Impact: Minimal. Existing investors continue to hold the same options with the same features; only the naming convention changes to be more descriptive. Both payout and reinvestment facilities remain unchanged.

Operational Impact: Low. The change introduces a clearer delegation framework for IDCW declaration, potentially streamlining decision-making processes while maintaining trustee oversight through mandatory ratification.

Transparency Enhancement: The new nomenclature improves clarity by explicitly stating distribution frequency in the option name, making it easier for investors to understand the distribution schedule.

Impact Justification

Administrative change in option naming convention for mutual fund schemes with no material impact on operations or investor rights. Only affects nomenclature by adding frequency specification to existing IDCW options.