HDFC Mutual Fund Announces Income Distribution for Select Schemes

HDFC Mutual Fund has declared income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for a few of its schemes. The record date for eligibility is February 20, 2025. Investors holding units of these funds as of this date will receive the distribution.

Income Distribution 

The declared distribution per unit for each scheme is as follows:

• HDFC Mid-Cap Opportunities Fund (Direct & Regular IDCW) – ₹5 per unit
• HDFC Infrastructure Fund (Direct & Regular IDCW) – ₹1.50 per unit
• HDFC Multi Asset Fund (Direct & Regular IDCW) – ₹1.25 per unit
• HDFC Arbitrage Fund (Wholesale Direct & Regular IDCW) – ₹0.05 per unit

Understanding IDCW

Under the IDCW option, mutual funds distribute a portion of their profits to investors rather than reinvesting them. This payout is not an additional return but comes from the fund’s net asset value (NAV), which reduces accordingly.

IDCW payouts are taxable in the hands of investors, depending on their income tax slab. Unlike capital appreciation, which benefits from indexation in some cases, IDCW earnings are taxed as regular income.

Record Date and Implications

The record date is the cutoff for determining investor eligibility. Anyone holding units in these funds at the end of February 20, 2025, will receive the distribution. If units are bought after this date, the investor will not be eligible for the payout.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.