Master Capital Services receives SEBI’s in-principle approval for mutual fund sponsorship

Master Capital Services, a wholly owned subsidiary of Master Trust, has received in-principle approval from the Securities and Exchange Board of India (SEBI) to sponsor a mutual fund.

The approval from SEBI enables the company to take additional regulatory steps necessary to form an Asset Management Company (AMC) and launch mutual fund schemes, subject to fulfilling SEBI’s final registration requirements, according to a press release.

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The proposed mutual fund business will create a variety of equity, hybrid, and multi-asset schemes, which are meant for different types of investors. In terms of investment approach, it will involve a combination of quantitative investment methodologies with a bottom-up approach engineered to generate superior risk-adjusted returns over time.

The fund will seek simplicity, cost-effectiveness, and long-term value creation in meeting the financial objectives of each retail and institutional investor profile.

India’s mutual fund industry has entered a new era of growth, with assets under management breaking through the Rs 70 trillion mark. Given this backdrop, Master Trust’s entry into this segment is thoughtfully timed to cater to the growing appetite for mutual funds as a primary investment channel.

Backed by decades of experience in financial services and a technology-oriented strategy, the mutual fund business will enhance the overall investment services already provided by the firm, the release said.

In July, Master Trust, a leading broking and investment platform, formally applied to the Securities and Exchange Board of India (SEBI) for a mutual fund licence through its flagship company, Master Capital Services Limited, to act as sponsor of the asset management company which shall, post SEBI approval, launch schemes under the mutual fund.

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This evolution marks a major leap towards Master Trust’s objective of increasing access to professionally managed investment products. The Master Trust Group has established a strong footprint in equities, commodities, derivatives, and wealth management, according to a press release.