Bengaluru-based investment management firm Capitalmind Financial Services Pvt Ltd has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a new mutual fund.
According to a company press release, the milestone coincides with the company’s 10th anniversary.
“It is both an honour and a privilege to receive SEBI's in-principle approval for a mutual fund. We are grateful for this opportunity and are committed to building long-term wealth while maintaining the highest standards of regulatory compliance. Our team has established a solid reputation for excellence in performance, service, communications and research. We plan to leverage technology, partnerships and distribution channels to take advantage of India's strong growth story. We look forward to establishing Capitalmind Asset Management Company to meet SEBI's final approval requirements,” said Shenoy, Founder and CEO, on receiving SEBI's in-principle approval.
Management of Capitalmind It has invested Rs 2,200 crore for over 1,150 clients through its portfolio management service (PMS). Led by Deepak Shenoy, CapitalMind is ranked 25th in terms of assets under management (AUM) in discretionary equity strategies.
India has 746 million PAN cardholders as of March 31, 2024, but only 45 million unique mutual fund investors, indicating a considerable growth opportunity. The industry has experienced rapid expansion, with assets under management (AUM) growing at a compound annual growth rate (CAGR) of 24 per cent over the past five years.
“We are excited to introduce innovative investment approaches tailored to the growing needs of Indian mutual fund investors. Our goal is to serve the fast-growing group 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 vital role in the financialization of India by adding value to the fast-growing mutual fund industry. “India is a Rs 64 lakh crore mutual fund industry,” Shenoy said.
Capitalmind looks to join the growing list of Bangalore-based asset management companies in India. Other notable AMCs in Bangalore include Zerodha Fund House, Grow Mutual Fund and Navi Mutual Fund.
Since its inception, the company has consistently doubled its assets under management (AUM) each financial year, driven by strong portfolio performance and consistent inflows. This impressive growth has led to the creation of over $100 million. According to the press release, the company has helped its clients gain assets worth Rs 1,000 crore in less than seven years.
Vasisht Iyer, COO, CapitalMind, said, “Our commitment to technological and operational improvements has played a key role in establishing CapitalMind as the industry standard for transparency and client-centricity. By building our systems in-house, we have ensured that our processes are not only agile, but also perfectly aligned with the changing needs of our clients. This approach has enabled us to deliver unmatched service, set new standards in transparency, and maintain the highest levels of regulatory compliance. Our focus on technology has allowed us to stay ahead of the curve, ensuring that our clients receive the best possible results.”