MF investors alert: Two fund houses announce IDCW payouts; August 10 set as record date

Two mutual fund houses, Baroda BNP Paribas and ICICI Prudential Mutual Fund, have announced Income Distribution cum Capital Withdrawal (IDCW) payouts for select schemes.

The quantum of IDCW on the face value of ₹10 per unit will be ₹ 0.05 under Direct Plan - Monthly IDCW Option and Regular Plan - Monthly IDCW Option.

The IDCW payout for ICICI Prudential Mutual Fund’s Pharma Healthcare and Diagnostics (P.H.D) Fund will be ₹2.05 per unit on a face value of ₹10 under both IDCW and Direct Plan–IDCW options.

For ICICI Prudential Technology Fund, the IDCW payout will be ₹6.15 per unit on a face value of ₹10 under both IDCW and Direct Plan–IDCW options.

Mutual fund schemes offer two primary IDCW options for investors

In this plan, the mutual fund distributes the accumulated profits to investors at regular intervals. Once the distribution is made, the net asset value (NAV) of the fund decreases by the amount of the payout.

Instead of receiving the payout in cash, the profits are reinvested back into the mutual fund, purchasing additional units for the investor. This increases the number of units the investor holds, while the NAV of the fund is reduced by the payout amount.