Choice Mutual Fund has opened its first actively managed equity scheme, the Choice Large & Mid Cap Fund, with the new fund offer (NFO) available for subscription from October 20 to November 3.
The open-ended scheme will invest in both large-cap and mid-cap stocks, with a minimum allocation of 35% to each category. The remaining portfolio, up to 30%, may be invested in small-cap stocks and other permitted instruments, according to the scheme details.
The fund is benchmarked against the NIFTY Large Midcap 250 Total Return Index (TRI) and carries a ‘Very High’ risk rating. The benchmark also falls under the ‘Very High’ risk category.
The scheme will use Choice Asset Management Company’s (AMC) GVOTE framework to select stocks. The framework evaluates companies on five parameters — Growth, Value, Operating earnings, Trajectory and Excellence — against their respective sector peers. The scores are subsequently reviewed through research and an Investment Committee assessment.
Rochan Pattnayak, who has more than 20 years of experience in investment management and financial services, will manage the fund. He also manages the fund house’s Gold ETF, Nifty 50 Index Fund, Nifty Next 50 Index Fund and Overnight Fund.
According to the fund house, the scheme combines large-cap and mid-cap exposure within a single portfolio, with the minimum allocation to each category specified in its investment mandate.
The NFO units are priced at ₹10 each. Investors can apply under the Direct or Regular plan, with the Growth option available. The minimum lump-sum application amount is ₹1,000, with additional investments permitted in multiples of ₹1.
The scheme also offers systematic investment plans (SIPs) starting at ₹250 for daily and weekly frequencies. A monthly Chhoti SIP of ₹250 is available for first-time mutual fund investors.
An exit load of 1% will apply if units are redeemed or switched out within 365 days of allotment. No exit load will apply thereafter. The scheme is scheduled to reopen for continuous purchase and redemption within five business days of allotment.
The fund is intended for investors seeking long-term capital appreciation through predominantly large-cap and mid-cap equity investments. Investors should consider their risk appetite and investment horizon before investing, given the scheme’s ‘Very High’ risk classification.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.