Capitalmind Flexi Cap Fund debuts: Data-led, momentum-driven investing

Business Standard

18-07-2025

Capitalmind Asset Management on Friday announced the launch of its first mutual fund, the Capitalmind Flexi Cap Fund, an actively managed equity scheme using a quant-led, momentum-based strategy. The fund aims to dynamically allocate across large, mid, and small-cap stocks, with built-in risk management, and is open for investment from July 18 to July 28, 2025, the company said in a statement.
Key details:
The fund uses a multi-factor approach with momentum at its core, dynamically allocating across large, mid, and small-cap stocks, with built-in risk management and hedging flexibility
NFO runs from July 18 to July 28, 2025; benchmarked to Nifty 500 TRI, with a minimum investment of ₹5,000 and SIPs starting at ₹1,000
The fund will allocate a minimum of 65% to equity and equity-related instruments, and up to 35% in debt securities and money market instruments, with a provision to invest up to 10% in REITs and INVITs.
While the primary allocation will remain in equities, the dynamic nature of the strategy ensures flexibility to reposition during adverse market cycles or volatility spikes using predefined hedging rules.
Investment strategy decoded:
The fund's design eliminates behavioral biases and reduce discretionary decision-making in equity allocation.
The strategy is rooted in data-led discipline but remains flexible in its execution depending on market cycles.
The strategy will also incorporate hedging techniques where necessary to manage downside risk.
All you should know about the Fund:
Units will be allotted post closure, with the scheme benchmarked against the Nifty 500 Total Return Index (TRI) and classified under the 'Very High Risk' category in the SEBI Risk-o-Meter.
The minimum initial investment during the NFO period is ₹5,000 and in multiples of ₹1 thereafter.
For Systematic Investment Plans (SIPs), the minimum is ₹1,000 per installment with a minimum of six installments.
Investors can also switch into the scheme with a minimum of ₹1,000.
An exit load of 1% of applicable NAV applies to investments that are less than one year.
The fund is available in the growth option, both Regular and Direct modes.
With this launch, Capitalmind Mutual Fund marks its entry into the mutual fund space, drawing upon the extensive experience and track record of its sponsor, Capitalmind Financial Services Private Limited (CFSL). "Known for its legacy in quantitative research, systematic investing, and investor-first thinking, CFSL now brings these strengths into a regulated, retail-ready product through the Capitalmind Flexi Cap Fund, crafted for long-term investors with a high-risk appetite who seek disciplined, strategy-backed exposure to equity markets," the company said.
As India transitions from an emerging market to a more mature, domestically driven economy, there's growth potential across sectors and company sizes. This shift creates opportunity but also complexity, and requires investors to go beyond traditional, fixed-cap approaches.
'The Capitalmind Flexi Cap Fund is designed around a rule-based, quantitative approach that minimizes bias and emotion in portfolio construction. Rather than relying on forecasting or market narratives, the strategy uses data-driven factors to guide investments across the full spectrum of market capitalizations; large, mid, and small-cap stocks," said Deepak Shenoy, CEO, Capitalmind Mutual Fund.
'We designed the Capitalmind Flexi Cap Fund to do two things well; stay in step with the market's strongest trends and to change allocation when the data says risk is rising. By combining momentum with a dynamic mix of other proven factors, our rules-based framework moves across large, mid, and small cap opportunities while being mindful of downside risk. The result, we believe, is a disciplined yet agile investment approach that lets investors compound wealth over the long term without having to predict the market's next move.' said Anoop Vijaykumar, Head of Equity & Fund Manager, Capitalmind Asset Management Pvt. Ltd.
Capitalmind Mutual Fund has partnered with Kfin Technologies Ltd. as the Registrar & Transfer Agent (RTA) and Deutsche Bank AG as the custodian for the scheme.