HSBC Mutual Fund Announces IDCW Payouts Across 4 Schemes

HSBC Mutual Fund has declared income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for 4 of its schemes. The record date for this is February 25, 2025, meaning investors holding units in these schemes on this date will receive the payout.

Details of Income Distribution

The announced distribution per unit varies across the schemes. Here’s a breakdown of the payouts:

• HSBC Aggressive Hybrid Fund

• • • Direct Plan – ₹0.240 per unit
    • HSBC Aggressive Hybrid Fund IDCW – ₹0.210 per unit

• HSBC Asia Pacific (Ex Japan) Dividend Yield Fund

• • • Direct Plan – ₹1.500 per unit
    • Regular Plan – ₹1.500 per unit

• HSBC Balanced Advantage Fund

• • • Direct Plan – ₹0.155 per unit
    • HSBC Balanced Advantage Fund IDCW – ₹0.135 per unit

• HSBC Flexi Cap Fund

• • • Direct Plan – ₹3.900 per unit

• HSBC Flexi Cap Fund IDCW – ₹3.750 per unit

Record Date and Distribution Process

The record date determines which investors qualify for the payout. Those holding units in the IDCW option as of February 25, 2025, will receive the declared amounts per unit. After the distribution, the Net Asset Value (NAV) of the schemes will adjust accordingly.

IDCW vs Growth Option

The IDCW option provides payouts at intervals but does not increase the overall returns of the investment.

Tax Considerations

Payouts under IDCW are taxed as per the investor’s applicable tax slab, as they are treated as dividends rather than capital gains. Investors should factor this into their decision when selecting an IDCW plan.

Fund-Specific Observations

The HSBC Flexi Cap Fund has the highest payout among the four, while the Balanced Advantage Fund has the lowest. The Asia Pacific (Ex-Japan) Dividend Yield Fund has the same distribution for both its direct and regular plans.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.