By Mr. Abhay Ray 
Introduction
Capitalmind Financial Services announced on Monday that it has received final approval from the Securities and Exchange Board of India (Sebi) to begin operations as a mutual fund under the name Capitalmind Mutual Fund. With this approval, the company is set to expand its investment offerings beyond Portfolio Management Services (PMS) and Alternative Investment Funds (AIF).
Capitalmind Joins India’s MF Race after SEBI Approval
Capitalmind, a well-known player in the financial research and advisory space, has received approval from the Securities and Exchange Board of India (SEBI) to launch its own mutual fund business. This marks a significant step for the firm as it transitions from providing investment insights to managing public funds. The approval opens up new avenues for Capitalmind to offer a range of mutual fund products tailored to various investor needs, leveraging its expertise in market research and financial strategies. With SEBI’s clearance, Capitalmind aims to tap into India’s rapidly growing mutual fund market, which has seen increasing participation from retail investors in recent years. The move is expected to enhance competition in the industry while providing investors with more choices in fund management options.
Launch Plans and Strategy
The company said it plans to introduce its initial range of actively managed equity mutual fund schemes in the coming months. Over time, Capitalmind aims to diversify into debt, hybrid, and multi-asset fund categories.“Receiving Sebi’s final nod is a watershed moment, validating our commitment to bringing an investor-first, transparent, and data-driven approach to the wider investing public.
For years, we’ve focused on simplifying investing through disciplined strategies. Launching Capitalmind Mutual Fund is the natural evolution of our mission, enabling us to empower millions more Indians to achieve their financial goals with accessible, rules-based investment products,” said Deepak Shenoy, Founder and CEO of Capitalmind Financial Services, in a statement to PTI.
Current Operations and Reach
Capitalmind Financial Services currently manages over ₹ 2,000 crore in assets, serving more than 1,400 clients through its PMS and AIF platforms. It also operates Capitalmind Premium, a research and investing platform that has reached over 20,000 investors.
The newly formed Capitalmind Asset Management stated that its mutual fund offerings will be grounded in quantitative research and structured processes. The company highlighted its
emphasis on robust risk management and transparent communication with investors.
What did the company’s founder say
CapitalMind Financial Services founder and CEO Deepak Shenoy said in a statement – Getting the final approval from SEBI is a special moment, which recognizes our commitment to bring an investor-first, transparent and data-driven approach to the wider investing public. The newly formed CapitalMind Asset Management said its offering will be based on strong quantitative research, disciplined processes, rigorous risk management and clear investor communication.
Investment in equity mutual funds decreased
CapitalMind Mutual Fund is being launched at a time when investment in equity mutual funds seems to be declining. Investment declined by 14 per cent to ₹ 25,082 crore in March. Let us tell you that investment in equity funds declined for the third consecutive month. However, net flow in mutual fund schemes has remained positive for the 49th consecutive month.
Among the equity fund categories, flexi cap funds saw the highest investment of ₹ 5,165 crore in March. However, sectoral/thematic funds saw a sharp decline with investment of ₹ 735 crore. It had a strong investment of ₹ 5,711 crore in February. At the same time, mid-cap and small cap mutual funds continued to attract significant investor interest with inflows of ₹ 3,439 crore and ₹ 4,092 crore respectively in March.
Industry Context
The mutual fund industry in India has seen considerable expansion in recent years. The total assets under management (AUM) in the sector have crossed ₹ 65 lakh crore, with more than 5.3 crore unique investors now participating through various schemes.
Capitalmind’s entry into the mutual fund space positions it alongside a growing number of players aiming to meet the demand for diversified, professionally managed investment products.
Conclusion
Capitalmind has received approval from SEBI (Securities and Exchange Board of India) to launch its own mutual fund business, marking a significant milestone for the fintech firm. This approval paves the way for Capitalmind to expand its portfolio offerings and cater to a growing demand for investment products in India. The move reflects the increasing participation of technology-driven firms in the financial services sector, which are leveraging data analytics and user-centric platforms. The new mutual fund venture is expected to bring innovative investment solutions, targeting a wide range of retail investors. Capitalmind’s entry into the mutual fund space could further democratize investing, making it more accessible and efficient for individuals across the country.
GetMyIndia.com RaysVeda.com GetMyStartup.com LawCanal.com ABHAYRAY.COM ZinCob.com