Description

Capitalmind Asset Management discontinues the IDCW-Reinvestment sub-option for Capitalmind Arbitrage Fund effective 23rd February 2026, retaining only the IDCW Pay-out facility.

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 is discontinued. Investors may only avail the IDCW Pay-out facility going forward.

Key Points

  • The IDCW (Income Distribution cum Capital Withdrawal) Reinvestment sub-option is discontinued for Capitalmind Arbitrage Fund under both Direct and Regular Plans.
  • Post-change, the IDCW Option will offer only the Pay-out sub-option/facility.
  • The Growth Option remains unchanged; income attributable to Growth Option units continues to be reinvested and reflected in NAV.
  • Both Direct Plan and Regular Plan structures are retained; default plan remains “Direct Plan” when no broker code is stated.
  • The scheme continues to maintain a common portfolio across all Plans/Options/Sub-options.
  • Default option remains Growth Option if the investor has not indicated a preference.

Regulatory Changes

The SID and KIM of Capitalmind Arbitrage Fund are amended to remove the IDCW-Reinvestment sub-option. The amended scheme features table reflects the removal of sub-option (b) — “Reinvestment of Income Distribution cum capital withdrawal (IDCW) option/facility” — leaving only sub-option (a) Pay-out as available under the IDCW Option.

Compliance Requirements

  • Existing investors enrolled in the IDCW-Reinvestment sub-option should review their investment instructions and update preferences if required before the effective date.
  • Distributors and intermediaries should update client records and cease processing IDCW-Reinvestment transactions for this scheme from the effective date.
  • The AMC and Trustee are responsible for ensuring all scheme documents, platforms, and communication materials reflect the updated options.

Important Dates

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

Impact Assessment

The impact is limited to existing and prospective investors of Capitalmind Arbitrage Fund who preferred the IDCW-Reinvestment sub-option. Such investors will need to switch to the IDCW Pay-out sub-option or the Growth Option. There is no broader market impact. The change does not affect the fund’s investment objective, portfolio strategy, or fee structure.

Impact Justification

Narrow scheme-level amendment affecting only investors holding the IDCW-Reinvestment sub-option of a single mutual fund scheme; no broader market or regulatory impact.