NFO Alert: Choice Mutual Fund launches large & midcap fund, its first actively managed equity fund

Choice Mutual Fund has announced the launch of the Choice Large & Mid Cap Fund, its first actively managed equity fund. The fund is an open-ended equity scheme investing in both large cap and mid cap stocks.

The new fund offer or NFO of the fund is open for subscription and will close on November 3. The units are offered at Rs 10 each.

The scheme must invest at least 35% each in large cap stock and mid cap stocks. Up to 30% may go to small caps and/or other permitted instruments. The benchmark is the NIFTY Large Midcap 250 Total Return Index and it will be managed by Rochan Pattnayak.


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According to a press release by the fund house, the stocks will be selected using GVOTE, Choice AMC’s internal framework. It tests each company on Growth, Value, Operating earnings, Trajectory and Excellence, against its sector peers. The scores are then confirmed through research and an Investment Committee review.

“This launch reflects the next step in how we are building Choice Mutual Fund. Our equity schemes so far have been index funds, and with the Choice Large & Mid Cap Fund we now offer an actively managed equity scheme. The mandate is simple to explain: at least 35% each in large and mid cap companies, with the fund manager selecting stocks within it,” said Ajay Kejriwal, CEO, Choice Mutual Fund.

The fund will offer direct and regular plans with growth options only. The minimum application amount is Rs 1,000 and in multiples of Re 1 thereafter. The minimum amount for additional purchase is Rs 1,000.

“Many investors hold a large-cap fund and a mid-cap fund separately, and have to decide when to rebalance between them. This fund brings both into one scheme and one SIP, and the minimum mix is built into the mandate. It reflects our focus on giving investors a simple, structured way to stay invested for the long term,” said Manish Jain, Deputy CEO, Choice Mutual Fund.

The minimum application amount for SIP is Rs 250 (daily and weekly), and a Rs 250 monthly Chhoti SIP for first-time mutual fund investors. An exit load of 1% will be applicable if redeemed or switched out within 365 days of allotment; nil thereafter.

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The scheme is suited to investors seeking long-term capital appreciation through investment predominantly in large cap and mid cap stocks. It carries a Very High risk rating, and so does its benchmark.

The fund is suitable for investors who are seeking long term capital appreciation and want investment predominantly in large cap and mid cap stocks.

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