Here’s how Capitalmind is scaling its mutual fund business

Capitalmind, among the newest mutual fund houses in the country, aims to have a fairly complete basket of funds focusing on select categories across equity, hybrid, and fixed income over the next 12–18 months. The fund house, which received the green light from the Securities and Exchange Board of India to start a mutual fund business in 2025, has recently launched two new fund offers for a multi-asset allocation fund and an arbitrage fund.

India’s mutual fund industry has seen strong inflows in the last few years, as more Indians have taken to investing money in capital markets. As of the end of February 2026, the net assets under management of India’s mutual fund industry were close to Rs 83 lakh crore. That has attracted many new companies to the industry, so much so that it now has over 50 asset management companies, with a few more on the way.

Despite this growth, it is the top ten companies that dominate India’s mutual fund industry in terms of AUM. Capitalmind says it is following a differentiated approach in its fund management to stand out.

“One way we slightly differ from some of the incumbents is our focus on more quantitatively led strategies. So, be it low volatility, profitability, or quality, we have taken a more quantitative lens to thinking about active investment strategies,” said Anoop Vijaykumar, head of equity at Capitalmind MF.

In the multi-asset allocation fund, Capitalmind has a dynamic asset allocation engine that decides the allocation to different asset classes, whether it is equity, fixed income, or commodities. Furthermore, within each of the categories, the selection of securities happens based on a quantitative set of rules, he noted.

While the equity component will have a multi-factor approach, commodities will follow a trend-following approach, he said. On the fixed-income side, meanwhile, the company intends to follow an accrual strategy, picking up 1–3-year papers rather than taking frequent duration calls, and will focus on top-rated companies.

“The idea is to not add volatility with the fixed-income schemes,” said Prateek Jain, head of fixed income at Capitalmind MF.

With the two new fund launches, the fund house will have a total of four schemes — flexi-cap equity, liquid, multi-asset, and arbitrage (hybrid). The fund house will look to diversify further within these categories.

“Our overall objective is to build a fairly complete basket of funds that serves investors across the entire spectrum of risk and return,” said Vijaykumar.

Capitalmind may at a later stage look at launching a large-cap fund and a mid-cap fund, he added.