ICICI Prudential Mutual Fund announces IDCW payouts across 3 schemes: Record date set for May 7

ICICI Prudential Mutual Fund has announced income distribution under the Income Distribution cum capital withdrawal (IDCW) option across three of its schemes, as approved by ICICI Prudential Trust, the trustee to the fund.

The record date for all distributions has been set as May 7, 2026, or the next business day if the date falls on a non-business day.

Investors holding units in the respective schemes as on the record date will be eligible for the declared payouts, subject to applicable NAV adjustments post distribution.

How do IDCW plans work?

The IDCW payout is part of periodic income distribution mechanisms offered by mutual funds, allowing investors to receive a portion of returns generated by the underlying portfolio.

When a Mutual Fund generates profits, it has two options: reinvest the profits back into the fund or distribute them to investors. If the fund decides to distribute profits, it issues IDCWs to investors

These IDCWs represent the investor's share of the fund's profits. The IDCW amount is determined by the fund's Net Asset Value (NAV) and the duration of the investor's holding period

IDCW payouts can be scheduled regularly, such as monthly or quarterly.

IDCW taxation rules

Under the current Indian tax laws, IDCW payouts are added to the investor’s income and taxed according to their applicable income tax slab.