Capitalmind launches liquid fund, expands into short-term debt space

Capitalmind Mutual Fund has introduced the Capitalmind Liquid Fund under SEBI’s liquid category, marking an entry into cash-management focused offerings. This new launch addresses “safety and liquidity” by providing rapid accessibility to money, especially for investors with short-term needs. Deepak Shenoy, CEO of Capitalmind Asset Management, said the fund fills a structural gap in the firm’s line-up. He noted that liquid schemes play a role in providing short-notice accessibility to money while supporting broader allocation decisions.

The Capitalmind Liquid Fund is now open for subscription under SEBI’s liquid fund category and represents a further expansion of the company’s short-term debt line-up. The scheme underscores a commitment to bridging functional gaps in products, promising speed and convenience without compromising on robust risk controls. As a liquidity-focused offering, it aims to strike the right chord between accessibility and prudent credit selection.

Prateek Jain, Head of Fixed Income at the fund house, said the scheme will operate within a tightly defined investment universe and follow established risk controls. According to him, the fund will focus on instruments with residual maturity of up to 91 days, including Treasury Bills, government securities, commercial papers, certificates of deposit and repos. Jain added that the scheme will target a PRC A1 risk profile with a preference for higher-rated issuers. By targeting high-quality papers, the fund aims to curb volatility while delivering consistent returns.

With this move, Capitalmind Mutual Fund joins other asset managers offering short-duration debt products designed for efficient cash deployment. Liquid funds in India remain an evolving segment, serving as an alternative to idle balances in current and savings accounts. By broadening its product architecture, the fund house adheres to investors seeking seamless redemption and balanced portfolio management.