Three New Fund Houses Set to Launch Mutual Fund Businesses Soon

Three new fund houses, Capitalmind Financial, Jio BlackRock, and Pantomath Capital Advisors, are about to join the Indian mutual fund space in the next few months. As per SEBI records, all three have been given in-principle approval to commence their mutual fund business. While Capitalmind Financial has already obtained the final go-ahead to start its schemes, the other two are awaiting the same.

Capitalmind Financial is set to start its mutual fund journey with actively managed equity mutual fund schemes. Subsequently, the company will launch schemes in the debt and hybrid asset segments. The fund house will adopt a quantitative, data-driven method of stock picking, which it currently employs in its Portfolio Management Services (PMS) and Alternative Investment Funds (AIF). Capitalmind currently oversees assets of more than Rs. 2,000 crore in its AIF and PMS business.

Pantomath Capital Advisors, another prospective fund house, will roll out a flexi-cap scheme as its initial product once it gets final approval. It also hopes to launch a liquid fund as well as hybrid schemes like a balanced advantage scheme and a multi-asset allocation scheme. With its private equity and alternative investments experience, the firm plans to introduce a private equity-style fund management strategy into mutual funds. Presently, Pantomath oversees approximately Rs. 4,000 crore under three Category II AIFs and operates a PMS scheme with assets of Rs. 250 crore. The firm has long-term ambitions to enter Special Investment Funds (SIFs) as well.

Conversely, Jio BlackRock has yet to reveal any specific information regarding its forthcoming mutual fund launches. Still, as a joint venture between Jio Financial Services and global investment behemoth BlackRock, its entry is being closely monitored by market players.

With these new players, the mutual fund sector is going to see new competition and innovation, as every fund house has its own investment approach and market experience.