Bengaluru-based investment management firm Capitalmind Financial Services Private Limited has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch new mutual fund.
According to a company press release, this milestone occurred simultaneously with the company’s 10th anniversary.
“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. We look forward to establishing Capitalmind Asset Management Company to meet SEBI’s final approval requirements,” said founder and CEO Shenoy said on receiving Sebi’s in-principle approval.
Capitalmind manages over ₹2,200 crore for more than 1,150 clients through its Portfolio Management Service (PMS). Under the leadership of Deepak Shenoy, Capitalmind is ranked 25th in terms of assets under management (AUM) in discretionary equity strategies.
As of March 31, 2024, there are 74.6 crore PAN cardholders in India, but only 4.5 crore unique mutual fund investors, highlighting 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 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.
Capitalmind appears to be joining the ranks of the expanding list of Bangalore-based asset management companies in India. Other notable AMCs from Bangalore include Zerodha Fund House, Groww Mutual Fund, and Navi Mutual Fund.
Since its establishment, the company has consistently doubled its assets under management (AUM) each financial year, thanks to strong portfolio performance and consistent inflows. This impressive growth has led to the creation of over ₹1,000 crore in wealth for clients in under seven years, according to the press release.
“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. This approach has enabled us to deliver unparalleled 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 outcomes,” said Vashistha Iyer, COO of Capitalmind.