The Securities and Exchange Board of India (SEBI) has given the Bengaluru-based investment management company Capitalmind Financial Services Private Limited preliminary approval to introduce a new mutual fund.
A press release from the company stated that this milestone fell in conjunction with the company’s tenth 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,” founder and CEO Shenoy said on receiving Sebi’s in-principle approval.
With its Portfolio Management Service (PMS), Capitalmind oversees more than 1,150 clients’ assets worth over ₹2,200 crore. Capitalmind, which is led by Deepak Shenoy, is rated 25th for discretionary equities strategies in terms of assets under management (AUM).
There is a significant growth opportunity as there are just 4.5 crore unique mutual fund investors in India as of March 31, 2024, compared to 74.6 crore PAN cardholders. Over the last five years, the industry has grown at a compound annual growth rate (CAGR) of 24%, indicating a significant expansion in assets under management (AUM).
“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.
It looks like Capitalmind is going to be added to the growing roster of Indian asset management firms with their headquarters in Bangalore. Groww Mutual Fund, Navi Mutual Fund, and Zerodha Fund House are a few other well-known AMCs from Bangalore.
Due to steady inflows and outstanding portfolio performance, the company has continuously doubled its assets under management (AUM) every financial year since its founding. According to the press release, this remarkable increase has resulted in the generation of nearly ₹1,000 crore in wealth for clients in less than seven years.
“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.
