Choice Mutual Fund Launches First Actively Managed Equity Scheme

Key Takeaways

• The Choice Large & Mid Cap Fund is Choice Mutual Fund's first actively managed equity scheme. 
• At least 35% of the portfolio must be invested in large-cap stocks and another 35% in mid-cap stocks. 
• The NFO runs from October 20 to November 3, with a minimum initial investment of ₹1,000. 

Choice Mutual Fund has launched the Choice Large & Mid Cap Fund, marking the asset manager's entry into actively managed equity funds. 

The NFO opened on October 20 and will close on November 3, 2026. Units are being offered at ₹10 during the new fund offer, while the minimum initial application amount is ₹1,000. 

The scheme falls within the large-and-mid-cap mutual fund category. Under category requirements, it will maintain at least 35% of assets in large-cap companies and at least 35% in mid-cap companies. 

The remaining portion provides room for other permitted investments. Choice Mutual Fund said up to 30% may be allocated to small-cap stocks and other eligible instruments, depending on portfolio positioning. 

The fund will benchmark its performance against the Nifty LargeMidcap 250 Total Return Index. 

Large-and-mid-cap schemes differ from flexi-cap funds because they are required to maintain defined minimum allocations to both market-cap segments. The structure therefore prevents the portfolio from moving predominantly into large caps or predominantly into smaller companies. 

For Choice Mutual Fund, the launch broadens the AMC's product line beyond its existing offerings and establishes its first discretionary stock-selection strategy in the equity mutual fund segment. 

The fund manager will be responsible for selecting securities within the permitted investment universe rather than simply replicating an underlying index. 

The scheme's future performance will consequently depend on factors including stock selection, allocation between large and mid-sized companies and broader equity-market conditions. 

As a newly launched fund, it does not yet have an operating performance record. The current development is therefore centred on the product launch, portfolio mandate and entry of Choice Mutual Fund into active equity management rather than returns.