Capitalmind Mutual Fund is set to broaden its equity offerings following a successful first year that saw its assets under management (AUM) exceed ₹600 crore across four distinct schemes. The fund house, which began operations with the Capitalmind Flexi Cap Fund in August 2025, now aims to launch fundamentally driven mid-cap and small-cap equity funds, subject to receiving all necessary internal and regulatory approvals.
Expanding Fund Strategy Beyond Factor-Based Investing
Deepak Shenoy, Founder of Capitalmind, highlighted the company's focus on building products for a diverse investor base. "It's been a year since we launched the Capitalmind Flexi Cap fund. We focused on building products for a wider audience spanning commodities, fixed income, and equity, and today, the Capitalmind Multi Asset, Arbitrage, and Liquid funds now offer something for most types of investors," Shenoy stated. He emphasized their data-driven investment approach, aiming to reduce volatility and adapt to market changes.
While Capitalmind's initial funds were built on factor-based investing and trend following, the upcoming mid-cap and small-cap offerings will adopt a discretionary and fundamentally driven approach. This marks an expansion in the fund house's investment methodology, demonstrating a commitment to utilizing different strategies based on market opportunities and product needs.
Current Portfolio and Performance Highlights
Capitalmind Mutual Fund currently offers four schemes:
- Capitalmind Flexi Cap Fund: An open-ended dynamic equity scheme investing across large, mid, and small-cap stocks, targeting long-term wealth creation. As of July 2026, it held an AUM of ₹452 crore, with mid-caps forming the largest share (40.6%) of its equity allocation. The fund delivered a 4.32% return over one month, outperforming the Nifty 500 TRI's 3.73%.
- Capitalmind Multi Asset Allocation Fund: Diversifies investments across equity, debt, money-market instruments, and commodities for long-term capital appreciation.
- Capitalmind Liquid Fund: Invests in short-term debt and money-market instruments (up to 91 days maturity) for investors seeking regular income.
- Capitalmind Arbitrage Fund: Seeks income from arbitrage opportunities in the equity cash and derivatives segments for short-to-medium term horizons.
Future Outlook for Investors
The proposed mid-cap and small-cap funds are anticipated later in the current financial year. For investors, these additions will provide new fundamentally driven equity options, complementing Capitalmind’s existing lineup. The fund house's philosophy, "Don’t Predict. Respond.," underscores its adaptive approach to portfolio management, adjusting to evolving market facts rather than relying on single forecasts.
Capitalmind also plans to explore differentiated hybrid schemes, strengthen its fund-management team, and enhance access through various distribution platforms and advisers, further solidifying its position in the mutual fund sector.