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 of its schemes, effective November 3, 2025. The changes add frequency indicators (Monthly/Quarterly) to IDCW option names for Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund. This is an administrative update approved by the Board of AMC and Trustee Company.

Key Points

  • Two schemes affected: Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund
  • IDCW options renamed to include frequency: “Monthly IDCW Option” and “Quarterly IDCW Option”
  • Changes apply to both Regular Plan and Direct Plan options
  • Effective date: November 3, 2025
  • Both IDCW Payout and IDCW Reinvestment facilities remain available
  • Addendum No. 39/2025 issued to update Scheme Information Document (SID) and Key Information Memorandum (KIM)

Regulatory Changes

New delegation framework introduced for IDCW declaration:

  • Trustees can delegate IDCW declaration authority to AMC officials for up to monthly frequency
  • CEO of AMC must be included in delegation and made responsible for declarations
  • Record dates must be specified in offer document and adhered to
  • Policy framework must specify parameters for deciding quantum
  • Actual IDCW declared must be ratified by Trustees in immediately following Board meeting

Compliance Requirements

For Mahindra Manulife Mutual Fund:

  • Update SID and KIM of affected schemes to incorporate nomenclature changes
  • Maintain record date schedule: 7th of every month for Monthly IDCW (or next business day if non-business day)
  • Maintain record date schedule: Third Friday of March, June, September, and December for Quarterly IDCW
  • AMC/Trustees retain right to change record dates with appropriate notice

For Investors:

  • No action required; existing holdings automatically updated with new nomenclature
  • Note the frequency-specific naming for future transactions and communications

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)

Impact Assessment

Market Impact: Minimal. This is purely an administrative nomenclature change with no impact on market operations, trading, or investor returns.

Operational Impact: Low. The change improves clarity for investors by explicitly stating the frequency of dividend distribution in the option name itself. Existing investors’ holdings and rights remain unchanged.

Investor Impact: Positive for clarity. The updated naming convention makes it immediately clear whether an IDCW option distributes dividends monthly or quarterly, reducing potential confusion during investment decisions.

Schemes Affected:

  1. Mahindra Manulife Aggressive Hybrid Fund (open-ended hybrid scheme with predominantly equity exposure)
  2. Mahindra Manulife Equity Savings Fund (open-ended scheme investing in equity, arbitrage, and debt)

Impact Justification

Administrative change in option naming for mutual fund schemes to clarify dividend frequency. Does not affect trading operations or investor holdings, only nomenclature for better clarity.