Deepak Shenoy-led Capitalmind Financial Services to launch its mutual fund scheme, gets Sebi's approval

Bengaluru-based Capitalmind Financial Services, led by Deepak Shenoy, will be launching its mutual fund schemes soon. Capital markets regulator Sebi has given its in-principle approval to Capitalmind launch a mutual fund. Capitalmind is progressively establishing its presence among the numerous new-age asset management firms operating within the country. Noteworthy asset management organizations comprise Zerodha Fund House, Groww Mutual Fund, and Navi Mutual Fund.

As a portfolio manager, Capitalmind manages over Rs 2,200 crore in assets for more than 1,150 clients. Since its inception, the company has doubled its AUM every financial year. This was driven by portfolio performance and steady inflows.

"Receiving SEBI's in-principle approval for a mutual fund is both an honour and a privilege. We are grateful for this opportunity and remain 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, communication, and research. We plan to leverage technology, partnerships, and distribution channels to capitalize on India's robust growth story," CEO Shenoy said.

As of the end of March 31, 2024, the total number of Permanent Account Number (PAN) cardholders in India stands at 74.6 crore, whereas the count of unique mutual fund investors is recorded at 4.5 crore. This disparity underscores a significant potential for growth within the financial sector. Notably, the industry has undergone substantial development, evident in the assets under management (AUM) witnessing a commendable compound annual growth rate (CAGR) of 24 per cent over the past five years.

According to the Association of Portfolio Managers of India, Capitalmind is recognized as the 25th largest portfolio management service in terms of Assets Under Management (AUM) for discretionary equity strategies.

Capitalmind first existed as a blog established by Shenoy, with a primary focus on investment strategies and personal finance management.

In 2017, the company diversified its services to encompass equity research, model portfolios, and a Portfolio Management Service (PMS), subsequently introducing an Alternative Investment Fund (AIF) in 2024. Throughout its evolution, Capitalmind has catered to a clientele exceeding 20,000 individual investors and 1,350 PMS customers, spanning High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs).

“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 ₹64 lakh crore mutual fund industry,” Shenoy added.

Vashistha Iyer, COO of Capitalmind, further said: "Our commitment to technological and operational improvements has been instrumental in establishing Capitalmind as an industry benchmark for transparency and client-centricity. By building our systems in-house, we've ensured that our processes are not only agile but also highly aligned with the evolving needs of our clients. Our focus on technology has allowed us to stay ahead of the curve, ensuring that our clients receive the best possible outcomes."