Description

Capitalmind Asset Management announces discontinuation of the IDCW-Reinvestment sub-option for Capitalmind Arbitrage Fund, effective 23rd February 2026. Only the IDCW Payout option will remain available under the IDCW Option.

Summary

Capitalmind Asset Management Private Limited and Capitalmind Trustee Private Limited have issued Notice cum Addendum No. 006/2025-26 to discontinue the IDCW-Reinvestment sub-option/facility under the Capitalmind Arbitrage Fund (both Direct and Regular Plans), effective 23rd February 2026. Going forward, the IDCW Option will only offer the Payout sub-option.

Key Points

  • The IDCW-Reinvestment sub-option is being discontinued across both Direct Plan and Regular Plan of Capitalmind Arbitrage Fund.
  • The Growth Option and IDCW Payout sub-option remain unchanged and continue to be available.
  • The scheme continues to offer two plans: Direct Plan (default when no broker code is provided) and Regular Plan.
  • The common portfolio structure across all Plans/Options/Sub-options is retained.
  • Default option remains Growth Option if no choice is indicated by the investor.

Regulatory Changes

  • Scheme Information Document (SID) and Key Information Memorandum (KIM) are being amended via Addendum No. 006/2025-26.
  • The IDCW Option sub-options are reduced from two (Payout and Reinvestment) to one (Payout only), in accordance with SEBI (MF) Regulations.

Compliance Requirements

  • Investors currently enrolled in the IDCW-Reinvestment sub-option should take note of this change and contact Capitalmind Asset Management or their distributor to switch to an alternative option (Growth or IDCW Payout) if required.
  • Distributors and intermediaries must update client records and application processing workflows to reflect the removal of the Reinvestment sub-option.

Important Dates

  • Effective Date: 23rd February 2026

Impact Assessment

The impact is limited and affects only investors in the IDCW-Reinvestment sub-option of Capitalmind Arbitrage Fund. Investors in the Growth Option or IDCW Payout sub-option are not affected. This is a minor operational change with no broader market implications. Affected investors should review their investment instructions and update preferences before or on the effective date.

Impact Justification

Routine scheme modification affecting only the reinvestment sub-option of an IDCW facility in a single mutual fund scheme; no trading suspension, no broad market impact, and existing investors in the payout option are unaffected.