ICICI Prudential MF temporarily suspends fresh investments in IDCW options across 40+ schemes from Nov 3

ICICI Prudential Mutual Fund has announced a temporary suspension of fresh investments in the Income Distribution cum Capital Withdrawal (IDCW) options of several schemes, effective November 3, 2025. The move will apply to both regular and direct plans across a wide range of equity, debt, and fund-of-fund (FoF) schemes.

According to the fund house, the suspension covers all fresh lump-sum subscriptions, switch-ins, and new registrations under Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs). However, existing SIP and STP mandates will continue to be processed as usual, ensuring that ongoing investments remain unaffected.

While ICICI Prudential MF has not disclosed the reason or duration for this suspension, industry observers say such measures are occasionally taken by asset managers to manage dividend payouts or streamline distribution structures when market conditions or fund flows warrant a temporary pause.

40+ schemes affected across categories

The suspension spans more than 40 schemes, cutting across key index, thematic, and fixed-income categories. Some of the major schemes under the IDCW suspension include:

ICICI Pru BSE Sensex Index Fund

ICICI Pru NASDAQ 100 Index Fund

ICICI Pru Nifty 50 Index Fund

ICICI Pru Nifty 200 Momentum 30 Index Fund

ICICI Pru Nifty Midcap 150 Index Fund

ICICI Pru Nifty Next 50 Index Fund

ICICI Pru Nifty Smallcap 250 Index Fund

ICICI Pru CRISIL-IBX Financial Services 3–6 Months Debt Index Fund

ICICI Pru Nifty G-Sec Dec 2030 Index Fund

ICICI Pru Asset Allocator Fund (FOF)

ICICI Pru Bharat 22 FOF

ICICI Pru Global Advantage Fund (FOF)

ICICI Pru Silver ETF Fund of Fund

ICICI Pru Thematic Advantage Fund (FOF)

The growth options of these schemes will remain unaffected, meaning investors opting for capital appreciation rather than regular payouts can continue to invest normally.

The temporary halt in IDCW investments is not expected to have a major impact on existing investors, as ongoing SIPs and redemptions remain unaffected. Analysts note that this move may be a precautionary or operational measure, possibly linked to dividend policy adjustments or compliance requirements.

ICICI Prudential MF among India’s largest fund houses

As of September 2025, ICICI Prudential MF remains India’s largest fund house by regular plan AUM, managing Rs 5.22 lakh crore out of its total Rs 10.32 lakh crore in assets — representing 51% of its overall AUM. It narrowly leads SBI Mutual Fund, which has Rs 5.21 lakh crore in regular AUM, and HDFC MF, with Rs 5.04 lakh crore.

The top six fund houses — ICICI Prudential MF, SBI MF, HDFC MF, Nippon India MF, Kotak MF, and UTI MF — together manage nearly Rs 24.6 lakh crore in regular AUM, highlighting their dominance in India’s Rs 77.77 lakh crore mutual fund industry.

Smaller players are also making their mark: Mirae Asset MF, DSP MF, Edelweiss MF, and Tata MF have crossed the Rs 1 lakh crore threshold in regular AUM, showing strong traction among traditional distributors. In contrast, digital-first AMCs such as Zerodha MF and Jio BlackRock MF currently report zero regular AUM, reflecting the emergence of a two-speed distribution model — with established players relying heavily on intermediaries while new entrants focus on direct-to-investor channels.

The highest dependency on distributor-led inflows is seen in smaller fund houses such as Samco MF (91%), Mahindra Manulife MF (86%), WhiteOak MF (83%), and ITI MF (80%), underscoring the continued importance of traditional distribution networks in expanding reach beyond metros.

Investor implications

For investors, the temporary halt applies only to IDCW (dividend) options. Existing holdings and growth plan investments remain unaffected. Financial advisors note that the move may encourage more investors to shift towards growth options, which are often preferred for tax efficiency and long-term compounding benefits.

Analysts believe this decision reflects a larger industry trend — fund houses optimizing operational processes amid a maturing investor base and shifting preferences. With ICICI Prudential MF maintaining its leadership position and the broader industry’s AUM expanding steadily, the mutual fund sector continues to consolidate both in size and sophistication, even as policy adjustments like these help streamline investor experiences.