NFO Alert : Capitalmind Mutual Fund launches a multi asset allocation and arbitrage fund

Capitalmind Mutual Fund has announced the launch of two new actively managed funds: Capitalmind Multi Asset Allocation Fund and Capitalmind Arbitrage Fund.

The new fund offer or NFOs of both the schemes are open for subscription and will close on March 9. The schemes will reopen for continuous sale and repurchase on March 20.

Both schemes will be managed by Anoop Vijaykumar and Prateek Jain. The minimum investment amount for a lump sum investment in both these funds is Rs 5,000 and in multiples of Re 1 thereafter. For SIP, the minimum amount in both these funds is Rs 1,000 and in multiples of Re 1 thereafter.


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Capitalmind Multi Asset Allocation Fund

The fund is designed as a core, all-in-one allocation for investors who want diversification without the complexity of managing multiple funds. The fund dynamically allocates across equities (35% to 80%), fixed income (10% to 55%), and commodities (10% to 55%) using Capitalmind’s proprietary quantitative framework.

A key differentiator is the fund’s approach to commodities. By not limiting commodity exposure to gold and silver, Capitalmind Multi Asset Allocation Fund can access a broader opportunity set. The fund uses a rules-based, trend-following model to allocate across gold, silver, copper, aluminium, zinc, nickel, crude oil, and natural gas.

Each commodity has different demand drivers and responds to different economic catalysts. The model systematically identifies the commodities showing the strongest trends at any given time, aiming to capture diversification benefits that narrower approaches may miss.

The performance will be benchmarked against 50% NIFTY 500 TRI + 25% NIFTY Composite Debt Index + 25% MCX iCOMDEX Composite Index. The fund is suited for investors with a three-year or longer investment horizon who prefer a hands-off approach to asset allocation and want to benefit from the tax-efficient rebalancing that happens within the fund structure.

What the CEO says

"Markets are inherently unpredictable. The answer is not to predict better, but to build portfolios that can adapt. We have spent years at Capitalmind Financial Services refining systematic, rules-based strategies through our PMS,” said Deepak Shenoy, CEO, Capitalmind Asset Management.

“Capitalmind Mutual Fund is how we bring that discipline to a much wider set of investors. The Capitalmind Multi Asset Allocation Fund is for people who would rather have a process working for them than worry about timing market cycles,” Shenoy added.

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Capitalmind Arbitrage Fund

Capitalmind Arbitrage Fund is designed for investors seeking low volatility and tax-efficient returns. The fund generates returns by capturing price differences between cash and futures markets, a strategy that is largely independent of market direction.

The fund uses multiple arbitrage strategies: cash-and-carry arbitrage (buying stocks in the cash market while selling futures), futures-to-futures arbitrage (exploiting price differences between near-month and far-month contracts), and corporate-driven arbitrage around events like mergers, buybacks, and rights issues. A quant-driven signal generation system identifies opportunities with the highest probability of convergence.

What fund managers say

“Our commodity allocation goes beyond gold and silver because different commodities respond to different economic conditions. Copper and aluminium may rally during infrastructure booms, energy during supply disruptions, precious metals during uncertainty. By using a trend-following approach, we let the data guide allocation rather than making macro forecasts,” said Anoop Vijaykumar, Head of Equity and Fund Manager, Capitalmind Asset Management.

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“Arbitrage is one of the few strategies where returns come from market mechanics, not market direction. The spread between cash and futures prices exists because of the cost of carry and that spread converges at expiry. Our job is to identify the spreads with the best risk-reward and capture them systematically,” said Prateek Jain, Head of Fixed Income and Fund Manager, Capitalmind Asset Management.

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