IDCW, Income Distribution cum Capital Withdrawal

Tue, 12 May 2026 00:00:00 +0000

IDCW (Income Distribution cum Capital Withdrawal) is the official name, effective 1 April 2021, for what was previously called the “dividend” option in Indian mutual fund schemes. SEBI mandated the renaming through Circular SEBI/HO/IMD/DF3/CIR/P/2020/235 (dated 9 December 2020) to more accurately describe the economic nature of the distribution: unlike a corporate dividend which is paid from profits without reducing the share price proportionally on the ex-date, a mutual fund IDCW distribution reduces the scheme’s NAV by exactly the distribution amount per unit on the record date, because the money distributed to investors comes out of the scheme’s corpus.

Income Distribution on WebNotes

IDCW, Income Distribution cum Capital Withdrawal