Description

Capitalmind Asset Management and Capitalmind Trustee Private Limited announce the discontinuation of the IDCW-Reinvestment sub-option for Capitalmind Arbitrage Fund, effective 23rd February 2026.

Summary

Capitalmind Asset Management Private Limited and Capitalmind Trustee Private Limited have issued Notice cum Addendum No. 006/2025-26 to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of Capitalmind Arbitrage Fund. Effective 23rd February 2026, the IDCW-Reinvestment sub-option under the IDCW Option is discontinued for both Direct and Regular Plans of the scheme.

Key Points

  • The IDCW-Reinvestment (Reinvestment of Income Distribution cum Capital Withdrawal) sub-option/facility is being discontinued across both Direct and Regular Plans of Capitalmind Arbitrage Fund.
  • Only the IDCW Pay-out sub-option will remain available under the IDCW Option going forward.
  • The Growth Option remains unchanged and continues to be offered under both plans.
  • The scheme continues to offer two plans: Direct Plan (default when no broker code is stated) and Regular Plan (for applications with broker code).
  • The common portfolio structure across all Plans/Options/Sub-options remains unchanged.
  • Default option remains Growth Option if the investor has not indicated a choice.

Regulatory Changes

The SID and KIM of Capitalmind Arbitrage Fund are being amended to reflect the removal of the IDCW-Reinvestment sub-option. Post-change, the IDCW Option will only offer the Pay-out of Income Distribution cum Capital Withdrawal (IDCW) facility.

Compliance Requirements

  • Capitalmind Asset Management must update all scheme documents (SID/KIM) to reflect the removal of the IDCW-Reinvestment sub-option.
  • Existing investors enrolled in IDCW-Reinvestment should be notified and their investments migrated to an alternative option as per the fund house’s communication.
  • Distributors and advisors must ensure fresh subscriptions are not accepted under the discontinued IDCW-Reinvestment sub-option.

Important Dates

  • Effective Date: 23rd February 2026
  • Addendum Reference: Notice cum Addendum No. 006/2025-26

Impact Assessment

The impact is limited to existing and prospective investors who specifically use or intended to use the IDCW-Reinvestment sub-option of Capitalmind Arbitrage Fund. Investors currently enrolled in this sub-option will need to switch to either the IDCW Pay-out or Growth Option. There is no broader market or systemic impact. Arbitrage fund investors typically use the Growth option for tax efficiency, so the practical impact is expected to be minimal.

Impact Justification

This is a scheme-level administrative change removing the IDCW-Reinvestment sub-option from Capitalmind Arbitrage Fund. It affects only existing and prospective investors in this specific sub-option of a single mutual fund scheme and has no broader market impact.