Capitalmind secures SEBI approval to launch mutual fund

Capitalmind Financial Services Pvt. has obtained final regulatory approval from India’s Securities and Exchange Board (SEBI) to launch Capitalmind Mutual Fund, extending its quantitative investment strategies to retail investors.

The Bengaluru-based firm, managing over Rs 2,000 crore for 1,400 Portfolio Management Services (PMS) and Alternative Investment Fund (AIF) clients, will now operate under SEBI’s mutual fund framework.

The approval follows a seven-month process after in-principle clearance and the firm has planned an initial rollout of active equity funds, followed by debt, hybrid, and multi-asset products.

"We always envisioned mutual funds asthe ideal vehicle to deliversophisticated, rules-based strategies efficiently to retail investors, offering distinct operational and tax advantages," stated Vashistha Iyer, COO, Capitalmind Financial Services and Board Member, Capitalmind AMC.

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“Receiving SEBI’s final nod is a watershed moment, validating our commitment to bringing an investor-first, transparent, and data-driven approach to the wider investing public,” Founder and CEO Deepak Shenoy said. He added, “Launching Capitalmind Mutual Fund is the natural evolution of our mission, enabling us to empower millions more Indians to achieve their financial goals with accessible, rules-based investment products.”

The mutual fund arm will deploy strategies from its PMS offerings, including Adaptive Momentum and Surge India, which delivered post-fee returns of 27.06% and 28.35%, respectively, over five years ending March 31, 2025. “We always envisioned mutual funds as the ideal vehicle to deliver sophisticated, rules-based strategies efficiently to retail investors, offering distinct operational and tax advantages.” Iyer said, emphasising the operational advantages.

Capitalmind’s in-house technology stack—spanning fund accounting, automated trading, and research—positions it as a tech-forward entrant in India’s mutual fund industry, which manages Rs 65 lakh crore for over 5.3 crore investors.

Anoop Vijaykumar, Head of Equities at Capitalmind AMC, underscored the firm’s philosophy: “Investing can seem complex, but our philosophy is built on clarity and evidence. We combine statistical rigour with a deep understanding of market context, embedding risk awareness into every step.”