Choice Mutual Fund, backed by Choice International, has launched new fund offers (NFOs) for two passive index schemes — the Choice Nifty 50 Index Fund and the Choice Nifty Next 50 Index Fund. The NFOs will open on Thursday, March 19 and will close on Thursday, April 2.
NFO, or New Fund Offer, refers to the initial subscription phase of a newly launched mutual fund scheme, similar to how an IPO works for stocks.
“At Choice Mutual Fund, our focus is on creating simple, transparent and disciplined investment solutions that allow investors to participate in India’s long-term growth story. The launch of the Nifty 50 and the Nifty Next 50 Index Funds provides investors with core equity exposure with a structured framework for long-term wealth creation,” said Ajay Kejriwal, CEO, Choice Mutual Fund.
NFO details
Choice Nifty 50 Index Fund
The company said Choice Nifty 50 Index Fund offers exposure to India’s top 50 blue-chip companies, representing some of the country’s largest and most liquid listed firms. Positioned as a disciplined, SIP-led investment option, the fund allows investors to participate in the growth of leading Indian companies while benefiting from sectoral diversification.
The Nifty 50 represents nearly 44% of the free-float market capitalisation of stocks listed on the National Stock Exchange, making it a core building block for equity portfolios.
Minimum Investment – The minimum investment during the NFO is ₹1000, with additional investments allowed in multiples of ₹1 thereafter, with no entry or exit load.
Type of Scheme – It is an open-ended scheme replicating/tracking the Nifty 50 Total Return Index.
Objectives – The investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty Next 50 Index (TRI), subject to tracking errors.
Risk Factor – Investors should have a strong risk appetite, as the scheme falls under the very high-risk category due to its significant exposure to equities. There is no assurance or guarantee that the investment objective of the scheme will be achieved.
Investment Strategy: The investment strategy would revolve around reducing the tracking error to the least possible extent through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments to meet liquidity requirements.
Fund Manager – The scheme will be managed by Rochan Pattnayak, who is the Chief Investment Officer.
Choice Nifty Next 50 Index Fund
According to the filing, the Choice Nifty Next 50 Index Fund offers exposure to a set of emerging large-cap companies that have the potential to evolve into future market leaders.
Combined with the Nifty 50 Index Fund, it allows investors to achieve diversified exposure across India’s top 100 companies, providing a well-rounded approach to long-term equity investing.
Type of Scheme – It is an open-ended scheme replicating/tracking the Nifty Next 50 Total Return Index.
Objectives – The investment objective of the scheme is to generate returns that are commensurate with the performance of the NIFTY 50 Index (TRI), subject to tracking errors. There is no assurance that the investment objective of the Scheme will be achieved.
Risk Factor – The scheme falls under the very high-risk category due to its significant exposure to equities.
Investment Strategy – The investment strategy would revolve around reducing the tracking error to the least possible extent through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments to meet liquidity requirements.
Fund Manager – The scheme will be managed by Rochan Pattnayak.
These index funds are designed to encourage households to follow a structured and disciplined investment strategy, said the fund house.
“Many households invest across multiple schemes without a clear framework, often leading to broken SIPs or withdrawals from long-term investments. Our investment philosophy brings together core market exposure through the Nifty 50, growth potential through the Nifty Next 50, — enabling investors to build a more resilient and goal-oriented portfolio,” said Manish Jain, Deputy CEO, Choice Mutual Fund.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
