ICICI Prudential Mutual Fund has announced Income Distribution cum Capital Withdrawal (IDCW) payouts for three of its schemes. The distributions were approved by ICICI Prudential Trust and will be distributed to eligible investors holding units in the respective IDCW options as of the record date. Latest developments show that Baroda BNP Paribas Mutual Fund has also declared an IDCW payout of ₹0.06 per unit under the Direct Plan Monthly IDCW Option of its Arbitrage Fund, with June 8, 2026, set as the record date.
For ICICI Prudential Equity-Arbitrage Fund, the IDCW payout has been fixed at ₹0.0500 per unit on the face value of ₹10 under both the IDCW and Direct Plan-IDCW options. ICICI Prudential Multi-Asset Fund has declared an IDCW of ₹0.1600 per unit of face value ₹10 under the IDCW and Direct Plan-IDCW options. Meanwhile, ICICI Prudential Banking and PSU Debt Fund has announced an IDCW of ₹0.0466 per unit under the Quarterly IDCW option and ₹0.0653 per unit under the Direct Plan–Quarterly IDCW option, based on a face value of ₹10 per unit. The Baroda BNP Paribas Arbitrage Fund has set ₹0.06 per unit as the distribution rate under the Direct Plan Monthly IDCW Option.
The record date for all three schemes is June 8, 2026, or the immediately following business day if June 8 is a non-business day. According to reports from ICICI Prudential Mutual Fund, investors holding units in the respective IDCW options as of the record date will be eligible to receive the distributions. This mechanism allows mutual fund schemes to distribute accumulated profits to investors at regular intervals, with the net asset value (NAV) of the fund decreasing by the payout amount. The Baroda BNP Paribas Arbitrage Fund has also set June 8, 2026, as the record date for determining unitholders' eligibility to receive the declared distribution.
In this plan, the mutual fund distributes the accumulated profits to investors at regular intervals. 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 reduces by the payout amount. Before April 2021, IDCW was referred to as the 'dividend option.' In April 2021, the Securities and Exchange Board of India (SEBI) directed Mutual Fund houses to change the name from 'dividend option' to 'Income Distribution Cum Capital Withdrawal (IDCW)' to prevent confusion between dividends earned on stocks and those from mutual funds. The distribution is subject to the availability of distributable surplus in the scheme and applicable regulations.
