Bengaluru, 18 July: Capitalmind Financial Services, an investment management firm, on Thursday announced the launch of its first Alternative Investment Fund (AIF)- "Capitalmind Select India One".

This Category 3 AIF, which is designed as a long-bias multi-factor fund, aims to raise Rs 500 crore over the next 12 months, the company said in a press release.

The fund is open to investors with a minimum investment of Rs 1 crore, it added. Capitalmind has been managing an asset under management (AUM) of around Rs 2,000 crore and plans to expand its offering in this new fund.

The company said that the new fund combines multiple factors such as momentum, low volatility, and quality into a single pooled vehicle, offering investors an opportunity for long-term wealth appreciation.

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, the release said.

Deepak Shenoy, Founder & Chief Executive Officer of Capitalmind Financial Services said, “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.”

“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,” Vashistha Iyer, Chief Operating Officer of Capitalmind Financial Services, said.

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