Capitalmind CEO Deepak Shenoy on Navigating Volatile Markets with Rational Decision-Making

Capitalmind Crosses Rs 500 Crore AUM in First Year, Despite Challenging Market Conditions

Launched in August 2025, Capitalmind has rapidly built a four-scheme portfolio across equity, debt, and hybrid categories within eight months, positioning itself to tap almost the full spectrum of asset classes allowed for mutual funds. This early growth has come at a time when Indian markets have faced persistent foreign outflows, currency pressures, and subdued returns, conditions that have posed a tougher test for new entrants.

Despite this backdrop, the fund house closed its first financial year with assets under management (AUM) crossing Rs 500 crore, drawing over 11,000 investors from more than 1,300 cities and towns. A steadily expanding distributor base alongside strong direct participation points to early traction across channels.

Capitalmind's core investment philosophy is rooted in evidence-based and quantitative investing. CEO Deepak Shenoy outlined the approach, highlighting a disciplined, emotion-free approach to investing, even in uncertain markets. The fund relies on data and historical analysis to guide decisions rather than intuition, using measurable metrics like return on equity or return on capital to rank stocks.

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The fund's flexi-cap fund, for instance, uses a 'regime indicator' to identify whether markets are in an uptrend, downtrend, or sideways phase. Different factors work in different environments, and the fund adapts its approach accordingly. While human oversight is involved, Capitalmind takes several steps to minimize bias, including relying on established global research and validating it for Indian markets, and strictly following model outputs.

Key Statistics:

Capitalmind's AUM has crossed Rs 500 crore, with nearly 90 percent coming from direct plans. While this creates concentration risk, the fund is building its distribution network, with incremental inflows now including a higher share from distributors. The mutual fund ecosystem today allows distributors to onboard digitally and start operating from anywhere in the country.

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The fund's AUM is generally sticky, with investors focused on long-term outcomes rather than short-term performance. Capitalmind engages regularly with investors through newsletters, fact sheets, and personalized communication, building trust and emotional connect.

In terms of market valuations, Capitalmind's CEO remains optimistic about India's growth over a longer horizon of 10 years, citing stronger companies, higher savings, and increasing participation in markets. However, in the short term, uncertainty remains due to global factors such as geopolitical tensions and supply disruptions.

Advice for Investors:

The first step is to align investments with time horizons. Equally important is discipline, with investing becoming routine rather than reactive. Avoid trying to time the market, and stick to your plan. Additionally, avoid borrowing to invest, as consistency and patience tend to deliver results over time.