Description

Mahindra Manulife Mutual Fund changes nomenclature of IDCW options to include frequency details (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. The IDCW option names will now include the frequency of distribution (Monthly or Quarterly) to provide greater clarity to investors. This change has been approved by the Board of AMC and Trustee Company and will be effective from November 3, 2025.

Key Points

  • Two schemes affected: Mahindra Manulife Aggressive Hybrid Fund and Mahindra Manulife Equity Savings Fund
  • IDCW options renamed to include distribution frequency (Monthly/Quarterly)
  • Both Regular Plan and Direct Plan options will reflect the frequency in their names
  • Monthly IDCW record date: 7th of every month (or next business day if non-business day)
  • Quarterly IDCW record date: Third Friday of March, June, September, and December
  • Both Payout and Reinvestment facilities remain available for all IDCW options
  • Trustees can delegate IDCW declaration authority to AMC officials (including CEO) for monthly frequency

Regulatory Changes

New delegation framework introduced for monthly IDCW declarations:

  • Record date must be specified in offer document and adhered to
  • Delegation must include CEO of AMC who will be responsible for IDCW declarations
  • Policy must specify parameters/factors for deciding quantum
  • Actual IDCW declared must be ratified by Trustees in immediately following Board meeting

Scheme Information Documents (SID) and Key Information Memorandums (KIM) will be amended accordingly.

Compliance Requirements

For AMC:

  • Update Scheme Information Documents (SID) and Key Information Memorandums (KIM)
  • Incorporate new IDCW policy framework in SID under ‘Income Distribution cum Capital Withdrawal (IDCW) Policy’
  • CEO must take responsibility for IDCW declarations under delegated authority
  • Ensure ratification of IDCW declarations by Trustees in subsequent Board meetings

For Investors:

  • Note the updated nomenclature when investing or transacting in these schemes
  • IDCW functionality and facilities remain unchanged despite nomenclature update

Important Dates

  • Effective Date: November 3, 2025
  • Monthly IDCW Record Date: 7th of every month* (for Mahindra Manulife Aggressive Hybrid Fund)
  • Quarterly IDCW Record Date: Third Friday of March, June, September, and December* (for Mahindra Manulife Equity Savings Fund)

*Next Business Day if Record date falls on a Non-Business Day. AMC/Trustees reserve the right to change record dates.

Impact Assessment

Market Impact: Minimal - This is an administrative nomenclature change with no impact on fund performance, investment strategy, or portfolio composition.

Operational Impact: Low - Existing investors will see updated option names in their statements. The underlying IDCW distribution mechanism, frequencies, and facilities (Payout/Reinvestment) remain unchanged.

Investor Impact: Positive transparency enhancement - Inclusion of frequency in option names provides clearer information to investors about distribution schedules, reducing potential confusion when selecting investment options.

Compliance Impact: Minor updates required to scheme documents (SID and KIM) and investor communications to reflect the new nomenclature.

Impact Justification

Administrative change in option naming convention to clarify dividend frequency; no material impact on fund operations or investor returns