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Capitalmind Financial Services, a leading name in Indian investment management, today announced the launch of "Capitalmind Select India One," its first Alternative Investment Fund (AIF). This Category 3 AIF, designed as a long-bias multi-factor fund, aims to raise INR 500 crores over the next 12 months, marking a significant milestone in Capitalmind's growth trajectory. The fund is open to investors with a minimum investment of INR 1 Crore.

Building on its success in Portfolio Management Services (PMS), where it has amassed over INR 2,000 crores in Assets Under Management (AUM), Capitalmind is set to expand its offerings with this new fund. Capitalmind Select India One combines multiple factors such as Momentum, Low Volatility, and Quality into a single pooled vehicle, offering investors a unique opportunity for long-term wealth appreciation.

Capitalmind Select India One is designed for sophisticated investors seeking exposure to a diversified, quantitatively-managed equity portfolio with active risk management. The fund’s portfolio will be flexible in its allocation across market capitalization and sectors, and is designed to hold 20 to 40 stocks. It will use a mix of systematic hedging positions and cash-calls to mitigate downside risk.

Key Highlights:

1. Strategic Expansion: Capitalmind's first AIF, leveraging its proven expertise in quantitative investment strategies.

2. Rules-Based Approach: Employs systematic, dependable, and scalable investment methodologies for consistent outcomes.

3. Active Risk Management: Utilizes systematic hedging and cash-calls to mitigate downside risk.

3. Proven Track Record: The "Adaptive Momentum" strategy in Capitalmind's PMS has grown to over INR 1,000 crores in AUM, boasting a 5+ year track record with an impressive 28.8% CAGR since inception (vs 17.6% for Nifty 50 TRI).

4. Ambitious Growth: Targeting INR 500 crores in AUM for the new AIF within the first year of launch.

As of June 30, 2024, the fund’s allocation across sectors were as follows:

Deepak Shenoy, Founder and Chief Executive Officer of Capitalmind Financial Services, stated, “The use of Alternative Investment Funds will only grow as markets provide more opportunities to the less understood areas for capital allocation. As Capitalmind, we believe there is room for investors to access aggressive portfolio strategies through our quantitative factor-oriented approach to our now-liquid equity markets. We want our customers to make money while they sleep, and for that we must remain alert, focused and awake.”

Vashistha Iyer, Chief Operating Officer, Capitalmind Financial Services, said, “The launch of Capitalmind Select India One represents a natural progression in our journey to provide sophisticated investors with access to our most effective strategies. The success of our Adaptive Momentum approach in the PMS format has paved the way for this AIF. We're excited to offer a multifactor strategy that aims to deliver robust returns across various market conditions.”

This launch underscores Capitalmind's commitment to innovation in quantitative investment strategies, offering investors a compelling blend of expertise, proven performance, and forward-thinking approaches.

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