Description

Jio BlackRock Asset Management introduces Income Distribution cum Capital Withdrawal (IDCW) option under JioBlackRock Liquid Fund effective December 29, 2025.

Summary

Jio BlackRock Asset Management Private Limited has introduced an Income Distribution cum Capital Withdrawal (IDCW) option under JioBlackRock Liquid Fund, effective December 29, 2025. This open-ended liquid scheme with relatively low interest rate risk and credit risk will now offer IDCW options in addition to the existing Growth option under the Direct Plan. The IDCW option includes daily and weekly frequency sub-options with specific minimum investment requirements.

Key Points

  • IDCW option introduced under JioBlackRock Liquid Fund effective December 29, 2025
  • Available only under Direct Plan with two sub-options: Payout of IDCW and Reinvestment of IDCW
  • Daily IDCW frequency: Mandatory reinvestment only
  • Weekly IDCW frequency: Both payout and reinvestment available (every Monday or next business day)
  • Minimum investment for IDCW options: Rs. 50,00,000 (initial) and Rs. 1,00,000 (additional)
  • IDCW of Rs. 100 or less under weekly payout option will be mandatorily reinvested
  • Default option: Growth; Default IDCW frequency: Daily; Default sub-option: Reinvestment
  • IDCW can be distributed from investor’s capital (Equalization Reserve)

Regulatory Changes

This is a product enhancement notification rather than a regulatory change. The introduction of IDCW option is in accordance with SEBI (Mutual Funds) Regulations, where distributable surplus will be computed as per regulatory requirements.

Compliance Requirements

  • Investors must clearly specify their choice of option in applications
  • Scheme Information Document (SID) and Key Information Memorandum (KIM) will be updated to reflect IDCW option details
  • Statement of Additional Information (SAI) will include detailed disclosures on default plans and options
  • IDCW proceeds must be dispatched within 7 working days of Record Date or as prescribed by SEBI
  • Applicable stamp duty and other charges will be deducted before unit allotment

Important Dates

  • Effective Date: December 29, 2025
  • Daily IDCW Record Date: Daily
  • Weekly IDCW Record Date: Every Monday (or immediately succeeding business day if Monday is not a business day)
  • IDCW Dispatch Timeline: Within 7 working days of Record Date

Impact Assessment

This circular has minimal market-wide impact as it pertains to a product feature addition for a specific mutual fund scheme. The impact is limited to:

  • Investor Choice: Existing and new investors in JioBlackRock Liquid Fund gain additional income distribution options
  • Liquidity Management: Daily and weekly IDCW frequencies provide investors with more flexible cash flow management options
  • Market Segment: Affects only the mutual fund segment, specifically liquid fund investors on BSE StAR MF platform
  • Operational Impact: Fund house needs to update documentation and systems to support IDCW processing

The high minimum investment thresholds (Rs. 50 lakhs initial, Rs. 1 lakh additional) indicate this option targets institutional or high-net-worth investors rather than retail participants.

Impact Justification

Product feature introduction for a specific mutual fund scheme affecting only investors in JioBlackRock Liquid Fund, no broader market impact