Description

Mahindra Manulife Mutual Fund changes IDCW option nomenclature for two hybrid schemes to include frequency details (Monthly and 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 schemes, approved by the Board of AMC and Trustee Company. The changes add frequency details (Monthly/Quarterly) to IDCW option names for better clarity, effective November 3, 2025.

Key Points

  • Nomenclature change applies to Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund
  • IDCW options will now explicitly include frequency: Monthly IDCW Option or Quarterly IDCW Option
  • Both Regular Plan and Direct Plan options are affected
  • Record dates specified: 7th of every month for Monthly options; Third Friday of March, June, September, December for Quarterly options
  • Both IDCW Payout and IDCW Reinvestment facilities continue to be offered
  • Trustees can delegate IDCW declaration authority to AMC officials (including CEO) for monthly frequency dividends
  • Effective date: November 3, 2025

Regulatory Changes

New delegation framework introduced for monthly IDCW declarations:

  • Trustees can delegate IDCW declaration and record date fixing to AMC officials
  • CEO of AMC must be included in delegation and held responsible
  • Policy must specify parameters/factors for determining quantum
  • Record dates specified in offer document must be adhered to
  • Actual IDCW declarations require ratification by Trustees in immediately following Board meeting

Compliance Requirements

  • Scheme Information Documents (SID) and Key Information Memorandums (KIM) will be amended to reflect nomenclature changes
  • Addendum No. 39/2025 forms integral part of SID and KIM, overriding conflicting provisions
  • AMC must maintain policy framework for IDCW declaration as approved by Trustees
  • Record date adjustments to next Business Day if falling on Non-Business Day

Important Dates

  • Effective Date: November 3, 2025
  • Monthly IDCW Record Date: 7th of every month (or next Business Day)
  • Quarterly IDCW Record Date: Third Friday of March, June, September, and December (or next Business Day)
  • Note: AMC/Trustees reserve right to change record dates from time to time

Impact Assessment

This is an administrative change with minimal market impact. The nomenclature modification improves transparency by explicitly stating dividend frequency in option names, helping investors better understand the distribution schedule. No changes to investment strategy, asset allocation, fund management, or investor rights. Existing investors in IDCW options will see their holdings automatically renamed without requiring any action. The delegation framework for monthly dividends streamlines operational processes while maintaining trustee oversight through mandatory ratification.

Impact Justification

Administrative nomenclature change for mutual fund schemes that clarifies dividend frequency in option names but does not affect scheme operations, investments, or investor rights.