NFO Alert: Choice Mutual Fund launches large & midcap fund, its first actively managed equity fund
Choice Mutual Fund has introduced the Choice Large & Mid Cap Fund, marking its debut in actively managed equity schemes. This is an open-ended equity fund that will invest across both large-cap and mid-cap companies.The New Fund Offer (NFO) is currently open and will remain available for subscription until November 3. Units during the NFO are priced at Rs 10 each.As per the mandate, the scheme is required to allocate a minimum of 35% of its assets to large-cap stocks and at least 35% to mid-cap stocks.
Up to 30% of the portfolio can be invested in small-cap shares and/or other eligible instruments. The fund’s benchmark is the NIFTY Large Midcap 250 Total Return Index, and it will be managed by Rochan Pattnayak.The fund house stated in a press release that stock selection will follow GVOTE, Choice AMC’s proprietary framework. Under GVOTE, each company is evaluated on Growth, Value, Operating earnings, Trajectory and Excellence relative to sector peers. These quantitative scores are then validated through detailed research and reviewed by the Investment Committee before inclusion.Ajay Kejriwal, CEO of Choice Mutual Fund, said this launch represents the next phase in building the AMC’s product suite.
Until now, its equity offerings were limited to index funds; with the Choice Large & Mid Cap Fund, it is adding an actively managed equity product. He highlighted that the mandate is straightforward: maintain at least 35% each in large- and mid-cap stocks, with the fund manager actively choosing the portfolio within that framework.The scheme will be available in both direct and regular plans, with only growth options. The minimum lump-sum application amount is Rs 1,000, with subsequent investments also starting from Rs 1,000 and in multiples of Re 1.Manish Jain, Deputy CEO of Choice Mutual Fund, noted that many investors currently hold separate large-cap and mid-cap funds and must decide when and how to rebalance between them.
This fund combines both segments into a single scheme and a single SIP, with the minimum allocation mix embedded in the mandate. According to him, the objective is to offer investors a simple, rule-based structure to remain invested for the long term.For SIP investments, the minimum amount is Rs 250 for daily and weekly SIPs, and there is also a Rs 250 monthly “Chhoti SIP” option aimed at first-time mutual fund investors. An exit load of 1% will be charged if units are redeemed or switched out within 365 days from the date of allotment; there is no exit load thereafter.The scheme is intended for investors looking for long-term capital growth primarily through exposure to large-cap and mid-cap equities.
Both the fund and its benchmark carry a Very High risk rating.The fund is therefore positioned for investors who want long-term capital appreciation and prefer to invest predominantly in large-cap and mid-cap stocks.(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own and do not reflect the views of The Economic Times.)Investors with mutual fund-related questions can contact ET Mutual Funds on Facebook or Twitter. Queries can also be emailed to ETMFqueries@timesinternet.in along with details such as age, risk profile and Twitter handle for expert responses.
Source: The Economic Times
Related Posts
ABSL AMC launches two retail FoFs from GIFT City
ABSL AMC’s new GIFT City FoFs open up easier USD-based access to emerging markets and Indian equity strategies for resident and overseas clients, creating fresh advisory opportunities for MFDs.
Insurers and NPS slash equity buying by 45% as bond yields rise, while mutual funds remain the main equity buyers.
Lower equity allocations by insurers and NPS, driven by higher bond yields and solvency considerations, reinforce mutual funds’ growing role as the key domestic provider of equity liquidity.
Ten equity-oriented mutual funds top Rs 60,000 crore AUM, with four crossing Rs 1 lakh crore mark.
Several flagship equity and hybrid schemes have scaled very large AUMs, signalling strong investor participation and concentration in a few marquee funds that MFDs must track closely.
Indian bond yields hit multi-year highs as oil spike and RBI’s tightening stance fuel rate-hike expectations.
Rising bond yields driven by higher oil prices, sticky inflation and RBI’s hawkish stance signal a tighter rate environment that can impact debt fund valuations and asset allocation calls for MFDs.
Sunil Singhania-led Abakkus MF, JioBlackRock MF file draft documents with Sebi for three funds each
Two new AMCs are lining up six low-ticket hybrid, arbitrage, target-maturity and silver ETF products, widening allocation options MFDs can offer across risk profiles and time horizons.
ABSL AMC launches two retail FoFs from GIFT City
ABSL AMC’s new GIFT City FoFs open up easier USD-based access to emerging markets and Indian equity strategies for resident and overseas clients, creating fresh advisory opportunities for MFDs.
Insurers and NPS slash equity buying by 45% as bond yields rise, while mutual funds remain the main equity buyers.
Lower equity allocations by insurers and NPS, driven by higher bond yields and solvency considerations, reinforce mutual funds’ growing role as the key domestic provider of equity liquidity.
Ten equity-oriented mutual funds top Rs 60,000 crore AUM, with four crossing Rs 1 lakh crore mark.
Several flagship equity and hybrid schemes have scaled very large AUMs, signalling strong investor participation and concentration in a few marquee funds that MFDs must track closely.
Indian bond yields hit multi-year highs as oil spike and RBI’s tightening stance fuel rate-hike expectations.
Rising bond yields driven by higher oil prices, sticky inflation and RBI’s hawkish stance signal a tighter rate environment that can impact debt fund valuations and asset allocation calls for MFDs.
Sunil Singhania-led Abakkus MF, JioBlackRock MF file draft documents with Sebi for three funds each
Two new AMCs are lining up six low-ticket hybrid, arbitrage, target-maturity and silver ETF products, widening allocation options MFDs can offer across risk profiles and time horizons.
