Description

Mahindra Manulife Mutual Fund changes IDCW option nomenclature to include frequency (Monthly/Quarterly) for Aggressive Hybrid Fund and Equity Savings Fund, 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, effective November 3, 2025. The new nomenclature will explicitly include the distribution frequency (Monthly or Quarterly) in the option names. This change affects Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund, with Board of AMC and Trustee Company approval obtained.

Key Points

  • IDCW option nomenclature changes approved by Board of AMC and Trustee Company
  • Effective date: November 3, 2025
  • Mahindra Manulife Aggressive Hybrid Fund: IDCW options renamed to “Monthly IDCW Option” with record date on 7th of every month
  • Mahindra Manulife Equity Savings Fund: IDCW options renamed to “Quarterly IDCW Option” with record date on third Friday of March, June, September, and December
  • Both Regular and Direct plans affected for each scheme
  • Both Payout and Reinvestment facilities continue to be available
  • New delegation framework introduced allowing AMC officials (including CEO) to declare IDCW up to monthly frequency subject to trustee-approved policy

Regulatory Changes

The circular introduces a new governance framework for IDCW declaration:

  1. Delegation Authority: Trustees can delegate IDCW declaration and record date fixing to AMC officials for up to monthly frequency
  2. CEO Responsibility: Delegation must mandatorily include the CEO of AMC who becomes responsible for IDCW declarations
  3. Policy Framework: Declarations must adhere to policy framework approved by Trustees
  4. Parameter Specification: Policy must specify appropriate parameters or factors for deciding quantum
  5. Ratification Requirement: Actual IDCW declared must be ratified by Trustees in immediately following Board meeting

Scheme-Specific Changes

Mahindra Manulife Aggressive Hybrid Fund

  • Previous: Regular Plan - IDCW Option / Direct Plan - IDCW Option
  • New: Regular Plan – Monthly IDCW Option / Direct Plan – Monthly IDCW Option
  • Record Date: 7th of every month (or next business day if non-business day)

Mahindra Manulife Equity Savings Fund

  • Previous: Regular Plan - IDCW Option / Direct Plan - IDCW Option
  • New: Regular Plan – Quarterly IDCW Option / Direct Plan – Quarterly IDCW Option
  • Record Date: Third Friday of March, June, September, and December (or next business day if non-business day)

Compliance Requirements

  • Scheme Information Documents (SID) and Key Information Memorandum (KIM) to be suitably amended
  • New paragraph to be incorporated in SID under “Income Distribution cum Capital Withdrawal (IDCW) Policy”
  • Addendum forms integral part of SID and KIM, overriding conflicting provisions
  • AMC retains right to change record dates from time to time

Important Dates

  • Effective Date: November 3, 2025
  • Monthly IDCW Record Date: 7th of every month
  • Quarterly IDCW Record Dates: Third Friday of March, June, September, and December
  • Fallback Rule: Next business day if record date falls on non-business day

Impact Assessment

This is a nomenclature and administrative change with minimal market impact. The change improves transparency by explicitly stating distribution frequency in option names, making it easier for investors to identify the IDCW payout schedule. The underlying fund operations, investment strategies, and investor rights remain unchanged. The new delegation framework streamlines operational efficiency for monthly IDCW declarations while maintaining trustee oversight through mandatory ratification requirements.

Impact Justification

Administrative nomenclature change for mutual fund IDCW options that clarifies distribution frequency but does not materially affect fund operations or investor rights