All you need to know about Capitalmind PMS

Capitalmind PMS is a SEBI Regd. Portfolio Manager (INP000005847). We are the trusted partners for over 1,000 clients, managing over ₹1,750 crores. We invest in Equity and Debt portfolios to build long-term wealth for our clients.

Our Client Advisory Team helps you build the ideal portfolio mix suited to your risk profile.

Read 👉🏽 in case you’d like to understand what Portfolio Management Services are and what to consider when investing in one: What are Portfolio Management Services (PMS)? A guide for investors in India.

Capitalmind PMS has three active Equity Portfolios

Capitalmind Surge India

Surge India is Capitalmind's fundamentally picked set of stocks expected to see significant tailwinds over the next five to seven years enabling significant earnings growth.

The portfolio is based on the significant shifts playing in India. We call them the महा trends (Maha trends).

Some of the areas we expect these trends will play out over the next few years are in Financialization, Logistics, Domestic consumption, Import substitution, Electrification of transport among others.

Learn more about Capitalmind Surge India.

The portfolio also looks to identify special situation opportunities, for example, unlocking of value of higher return on capital businesses from parent companies, consolidation within a previously fragmented industry among others.

Check out our video on the core philosophy of the Surge India portfolio.

Capitalmind Adaptive Momentum

Capitalmind Adaptive Momentum is the first (and only PMS) quantitative investment strategy built on the momentum factor. It identifies stocks showing relatively stronger price momentum than the broader market. After five full years of live operation, we summarised our real-world learnings from running probably the best Momentum PMS portfolio in India: Demystifying Momentum.

The momentum factor has been proven globally through extensive research by academics and practitioners. Two professors at the University of California, Prof. Jegadees Narasimhan and Prof. Sheridan Titman published the seminal paper on momentum in 1993. Since then, several other papers have corroborated the existence of Momentum as a factor capable of delivering excess returns when applied over the long term.

At Capitalmind, we have explored the momentum factor since 2017. We published our white paper on Momentum in Indian markets, confirming that it works in India. For an in-depth look at Momentum investing, read Understanding Momentum Investing.

We built on the core idea of momentum and rigorously backtested various strategy implementations. The Capitalmind PMS Momentum portfolio has been live since 2019.

Equity markets trend up nearly 70% of the time. However, they occasionally experience deep corrections of 50% or more. While no equity investment strategy is immune to corrections, a strategy that can limit its downside to the extent of or slightly better than the benchmark has a significant chance of outperforming over the long term.

The presence of inclusion criteria has worked, in real market conditions, to reduce exposure to equities during broad market corrections, allowing for reduced exposure when markets are at their weakest.

Learn more about Capitalmind Adaptive Momentum.

With a live track record of five years, it is India's first (and probably only) Momentum-based PMS strategy.

Capitalmind Resilient

Designed to harness the Low Volatility factor, it identifies stocks showing relatively lower price volatility than the broader market. An ideal complement to a momentum / growth-oriented portfolio.

Based on research by Pim Van Vliet, titled 'High Returns from Low Risk: A remarkable stock market paradox', Low Volatility investing looks to harness the behavioural bias most investors display to buy stocks with lottery-like return profiles based on their high growth estimates. Conversely, investors tend to undervalue low-volatility stocks, as they are perceived to be boring or unexciting. This creates a mispricing opportunity for low-volatility investors.

Learn more about Capitalmind Resilient.

Our backtests of Low Volatility investing in Indian markets found that the strategy gravitates toward highly liquid, large and mid-cap stocks that are not "buzzing" in financial media, at the time of portfolio inclusion.

 

What investment strategy is right for you?

We don't think One size fits All.

Capitalmind clients can allocate their funds across all three portfolios.

Allocating to portfolios with different investment philosophies means matching your investment temperament to pick the ideal mix that maximises your chances of staying invested for long-term returns.

Our team runs you through a detailed questionnaire and a one-on-one conversation to determine the right mix for you, considering your risk tolerance and time horizon.

Schedule your customised strategy consultation today.

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Talk to us to explore the right mix of Capitalmind portfolios for your long-term wealth goals.

Frequently Asked Questions (FAQ)

How do I sign up for Capitalmind PMS?

You can start the sign-up process here. (Right-click and open as new tab)

Once you've finished registering, you’ll receive an email that contains the Capitalmind strategy deck and information about our performance. In addition, the email will provide a link allowing you to arrange a meeting at a time that suits you, enabling a thorough conversation with our Client Advisory Team.

What documents do I need to open my account?

We require a few documents including the PAN, address proof, a canceled cheque, and certain KYC details from you or the applicant(s). For more information on setting up accounts like Trust, HUF, Partnership, or Company accounts, please feel free to reach out to us at connect@capitalmindwealth.com.

What is the minimum and the maximum amount I can invest in Capitalmind PMS?

The minimum investment is Rs 50 lakhs — that’s the SEBI rule for all portfolio managers like us. This needs to come when you get started and we can’t stagger this investment amount. Subsequently, you can invest as much as you like. There is no upper limit for investment in PMS.

Does the minimum 50L investment apply to incremental investments in the PMS?

No, after the initial investment of 50L, incremental investments can be any amount. Several clients set up monthly SIPs to keep adding regularly to their investments. Adding funds to your investment account is a simple process through the Capitalmind PMS client dashboard.

Can a HUF (Hindu Undivided Family) invest in Capitalmind PMS?

Yes, a HUF can open a Capitalmind Wealth account. To request the HUF forms and guidelines, please write to us at connect@capitalmindwealth.com and we’ll get back to you in one business day.

Can I open a joint account with my husband/wife/son/daughter/father/mother?

Yes. You can open a joint account for PMS.

Do you have a Digital Onboarding facility to open a Capitalmind PMS account?

Yes, we do have a Digital Onboarding facility for opening a PMS Demat account. To start the process, simply email us your KYC details and documents at connect@capitalmindwealth.com. Upon receiving your information, we will review it in accordance with your KRA (Know Your Customer Registration Agency) status to determine your eligibility.

Are there entry and exit loads in Capitalmind PMS?

No, there are no entry or exit loads in Capitalmind PMS. Clients can withdraw their funds at any time without any additional fees or charges.

Can I invest in multiple Capitalmind PMS Investment Strategies?

Yes, our client advisors do a personalised strategy consultation and recommend an allocation across our strategies depending on your risk profile. This mix can be modified in the future.

Do I need to invest minimum 50L in each Capitalmind PMS Investment Strategy?

No, your total investment amount should meet the SEBI-mandated minimum of 50L. Capitalmind PMS offers the flexibility to allocate this amount across one or more strategies depending on your specific needs. What's more, our Client Advisor team periodically review and recommends modifications to the allocation to ensure you stay on track.

How do I, as a Capitalmind PMS client, keep track of my investment performance?

Capitalmind PMS clients get access to a secure industry-leading client dashboard, which gives full visibility into their holdings, realised and unrealised gains, and performance since inception versus the benchmark. Clients can view their overall portfolio and drill down into specific investment strategy performance, which gets updated daily. The client dashboard is also available as an app on iOS and Android to check your investments on the go.

How do taxes work in the PMS?

Capital gains realised by the portfolios, both short-term and long-term, are taxable. The Capitalmind PMS client dashboard provides detailed Tax PnL statements with holding-level and transaction-level details in conveniently downloadable formats to calculate tax payable. Most clients choose to download the tax PnL statements quarterly and send them to their tax accountant to file advance tax as and when applicable.

Does Capitalmind PMS optimise taxes with tax-loss harvesting?

To the extent the portfolio strategies allow, we offset realised gains to reduce tax impact. However, sometimes there aren't any losses available to offset gains (that’s really a good problem to have).