Capitalmind receives SEBI’s in-principle approval to launch mutual fund

Bangalore-based Capitalmind's PMS currently oversees over Rs 2,200 crores for more than 1,150 clients.

Capitalmind Financial Services Private Limited, which is an investment management company based in Bengaluru, has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a new mutual fund.

Bangalore-based Capitalmind's PMS currently oversees over Rs 2,200 crore for more than 1,150 clients. Headed by Deepak Shenoy,  Capitalmind ranks as the 25th largest Portfolio Management Service (PMS) by AUM in discretionary equity strategies.

Deepak Shenoy, Chief Executive Officer of Capitalmind, commented on the approval: "We are excited to introduce innovative investing approaches tailored to the evolving needs of Indian mutual fund investors. Our goal is to serve the rapidly growing cohort of 4.5 crore mutual fund investors with exceptional products and services while contributing to the growth of the overall Mutual Fund Industry. We look forward to playing a key role in the financialization of India by adding value to the rapidly growing Rs 64 lakh crore mutual fund industry."

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As of March 31, 2024, India has 74.6 crore PAN card holders, while unique mutual fund investors number just 4.5 crore, indicating significant untapped potential. The industry has shown rapid growth, with AUM increasing at a 24 percent compounded annual growth rate (CAGR) over the last five years.

Capitalmind's journey began as a blog when Deepak Shenoy started sharing insights on investing and personal finance. It expanded its offerings to include equity research, model portfolios, and a thriving investing community before eventually launching a PMS in 2017, and an AIF in 2024.

Throughout its history, Capitalmind has served over 20,000 retail investors and 1,350 PMS clients, including hundreds of High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals
(UHNIs).

"The trifecta of increased investor participation, inflows from active investors, and a booming economy provides strong growth tailwinds to the mutual fund industry," added Shenoy.

Capitalmind looks to be among the growing list of Bangalore-based asset management companies in India. Zerodha Fund House, Groww Mutual Fund and Navi Mutual Fund are prominent asset management companies (AMCs)  based out of Bangalore.

The Indian mutual fund industry is one of the most competitive with 43 players and more looking to enter the space which manages Rs 65 trillion worth of assets.

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As per the status of Mutual Fund Applications available with SEBI, there are four entities where granting of in-principle approval is under consideration as of June 30. These entities are Jio Financial Services Limited & BlackRock Financial Management Inc, Cosmea Investments Private Limited and AlphaGrep Securities Private Limited.

Two entities where in-principle approval has already been granted and approval for final registration is under consideration are Angel One Limited and Unifi Capital Private Limited.