Mahindra Manulife Mutual Fund Declares Income Distribution Across Multiple Schemes

Mahindra Manulife Mutual Fund has announced income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for several of its schemes. The record date for this distribution is set for March 13, 2025. Investors holding units as of this date will be eligible to receive the declared payout per unit.

Payout Details Across Schemes

The fund house has maintained a uniform distribution rate of ₹1.00 per unit across most schemes, ensuring consistency in payouts. Some of the funds receiving this distribution include:

• Aggressive Hybrid Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Balanced Advantage Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Business Cycle Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Consumption Fund (Direct & Regular IDCW) – ₹1.00 per unit
• ELSS Tax Saver Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Flexi Cap Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Focused Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Large & Mid Cap Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Large Cap Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Mid Cap Fund (Direct & Regular IDCW) – ₹1.00 per unit
• Multi Cap Fund (Direct & Regular IDCW) – ₹1.00 per unit

Lower Distribution for Some Schemes

A few funds have received relatively lower payouts, likely showing their investment strategy and portfolio performance. These include:

• Equity Savings Fund (Direct & Regular IDCW) – ₹0.50 per unit
• Multi Asset Allocation Fund (Direct & Regular IDCW) – ₹0.25 per unit

IDCW Payout

For investors seeking periodic cash flows, IDCW distributions provide liquidity while retaining the investment’s growth potential. However, tax implications differ from capital appreciation, as IDCW payouts are taxable at the investor’s slab rate.

Impact on NAV

Since IDCW distributions are paid out from the scheme’s assets, the Net Asset Value (NAV) of the fund will decline by the corresponding amount on the payout date. Investors opting for IDCW should note this.

Conclusion

Mahindra Manulife Mutual Fund’s distribution highlights its plan to offer steady returns across diverse fund categories. While IDCW provides an option for regular income, investors should align their choices with financial goals and tax considerations.

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.