Parag Parikh Flexi Cap Fund Adds IDCW Option, Exit Window Open Till October 30

Parag Parikh Flexi Cap Fund, managed by PPFAS AMC, is introducing an IDCW (Income Distribution cum Capital Withdrawal) option in addition to its existing Growth option. This change takes effect from October 31, 2025. Unit holders who do not wish to continue under the revised scheme have a one-time exit window without exit load from October 1 to October 30, 2025.

IDCW Option Launch and Exit Window Details

From October 31, 2025, both Direct and Regular plans of the scheme will offer two options: Growth and IDCW. Under IDCW, unit holders may choose between Payout and Re-investment facilities. During the exit window from October 1 to October 30, redemptions or switches will be processed at the applicable NAV without exit load. After this period, standard exit load rules will resume if applicable.

Fund Strategy and Scheme Features Remain Unchanged

Despite this structural addition, the core of the fund remains intact. The investment objective, asset allocation, overseas investment cap, and value-oriented bottom-up investment strategy stay unchanged. The fund will continue to benchmark against the Nifty 500 TRI, and no other terms of the scheme are being altered apart from the IDCW inclusion.

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How IDCW Works and Key Operational Details

The IDCW option will distribute surplus income when available, with payouts made directly to investors' registered bank accounts. For demat units, the payout will follow the bank details registered with the depository. If payout is delayed beyond 7 working days from the record date (or 9 in exceptional cases), interest at 15% p.a. will be paid. If no IDCW facility is selected, the default will be Payout under the IDCW option.

Investor Action Points

No action is needed to remain invested. Non-responding unit holders will be deemed to have accepted the change. However, those wishing to redeem or switch must do so during the exit window. SIP holders must cancel their SIPs separately if they wish to exit. Units that are pledged or encumbered must be released before redemption.

Conclusion

With SEBI’s nod and trustee approval, the introduction of the IDCW option gives investors greater flexibility without altering the fund’s core strategy. The exit window provides a fair opportunity for those who do not consent to this change.

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Investments in the Mutual Funds are subject to market risks. Read all related documents carefully before investing.