Capitalmind Financial Services Private Limited, an investment management firm located in Bengaluru, has got preliminary clearance from the Securities and Exchange Board of India (SEBI) to create a new mutual fund.
Capitalmind's project management system, situated in Bangalore, presently manages over Rs 2,200 crore for over 1,150 clients. Deepak Shenoy leads Capitalmind, the 25th largest Portfolio Management Service (PMS) by AUM in discretionary equities strategies.
Deepak Shenoy, Capitalmind's CEO, remarked on the approval: "We are thrilled to deliver novel investment methodologies targeted to the increasing demands of Indian mutual fund clients. Our mission is to provide great products and services to the fast-rising cohort of 4.5 crore mutual fund investors, all while contributing to the overall growth of the mutual fund industry. We look forward to contributing to India's financialization by delivering value to the fast-rising mutual fund market of Rs 64 lakh crore."
As of March 31, 2024, India had 74.6 crore PAN card holders, while unique mutual fund investors numbered just 4.5 crore, indicating tremendous untapped potential. The sector has grown rapidly, with AUM expanding at a compound annual growth rate (CAGR) of 24% over the previous five years.
Capitalmind began as a blog, with Deepak Shenoy providing views on investment and personal finance. It expanded its products to include equities research, model portfolios, and an active investing community before introducing a PMS in 2017 and an AIF in 2024.
Throughout its history, Capitalmind has serviced over 20,000 retail investors and 1,350 PMS clients, including hundreds of HNIs and Ultra-HNIs.
"The trifecta of increased investor participation, inflows from active investors, and a booming economy provides strong growth tailwinds to the mutual fund industry," says Shenoy.
Capitalmind appears to be one of India's expanding number of asset management firms headquartered in Bangalore. Zerodha Fund House, Groww Mutual Fund, and Navi Mutual Fund are notable asset management firms (AMCs) situated in Bangalore.
The Indian mutual fund sector is one of the most competitive, with 43 firms and more trying to enter the space, which manages Rs 65 trillion in assets.
As of June 30, the status of Mutual Fund Applications available with SEBI shows that four businesses are being considered for in-principle approval. These companies include Jio Financial Services Limited, BlackRock Financial Management Inc., Cosmea Investments Private Limited, and AlphaGrep Securities Private Limited.
Angel One Limited and Unifi Capital Private Limited are two businesses that have received in-principle approval and are currently awaiting final registration permission.
