Capitalmind launches its first Alternative Investment Fund: Check details

The fund aims for a strategic expansion by leveraging its proven expertise in quantitative investment strategies

Capitalmind has launched its first alternative investment fund (AIF), named Capitalmind Select India One. The long-bias multi-factor fund aims to raise Rs 500 crore within its first year, targeting investors looking for a diversified, quantitatively-managed equity portfolio. The minimum investment for participation is set at Rs 1 crore, making it accessible primarily to high-net-worth individuals and institutional investors.

Fund allocation:

The fund will maintain a flexible allocation across market capitalization and sectors, with a portfolio designed to hold 20 to 40 stocks. It combines multiple factors such as momentum, low volatility, and quality into a single pooled vehicle. The fund will employ a mix of systematic hedging positions and cash-calls to mitigate downside risk.

 

“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,” said Deepak Shenoy, founder and chief executive officer of Capitalmind Financial Services.

As of June 2024, the company's highest allocation is 44.37 per cent in the industrials sector, followed by 15.16 per cent in consumer cyclicals. The fund allocates 13.6 per cent to non-energy materials and 9.47 per cent to health care. Allocations to sectors such as consumer non-cyclicals, finance, technology, and telecommunications range between 2 per cent and 8 per cent.

Minimum investment:

The minimum investment amount is Rs 1 crore.

Investment charges:

The management fee is 1 per cent per annum for Class A units and 2 per cent per annum for Class E units. There is a performance fee of 10 per cent with a 10 per cent hurdle rate and high watermark.

Exit loads:

3 per cent on exits within 1 year

2 per cent on exits within 2 years

1 per cent on exits within 3 years

Nil on exits after 3 years

Who should invest:

According to the company the fund is suitable for investors who want to embrace a diverse investment style for a robust long-term portfolio which aims to beat NIFTY benchmarks.

 

Rely on globally proven data-driven & research-based investment strategies rooted in clarity and objectivity, avoiding biases.

 

Make calculated investment choices that drive returns which are sizable but not surprising.

 

Commit to the long game (3 years+), through the ebb and flow of market volatility.

Risk profile:

The scheme involves "very high risk," according to the riskometer.

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