Marcellus’ Mutual Fund to extend the firm’s long-term investment approach to a wider base of Indian investors

Bengaluru: Marcellus Investment Managers today announced that it has received final approval from the Securities and Exchange Board of India (SEBI) to commence its mutual fund business in India. The approval marks a significant expansion for the firm, enabling Marcellus to take its research-led, long-term investment approach beyond its existing Portfolio Management Services (PMS) and Alternative Investment Fund (AIF) offerings and make it accessible to a broader base of Indian investors.

The final approval marks the next phase in the firm’s evolution since its establishment in 2018. The mutual fund platform will allow Marcellus to participate in India’s rapidly expanding mutual fund ecosystem and address a much larger pool of household savings through a regulated and accessible investment structure.

The move comes as Indian households increasingly participate in financial markets through mutual funds and systematic investment plans (SIPs). While the mutual fund industry has grown significantly over the years, mutual fund assets as a proportion of India’s GDP remain lower than in several developed markets, pointing to the substantial long-term opportunity for greater participation in market-linked savings and investments.

Commenting on the development, Pramod Gubbi, Managing Director & CEO, Marcellus Mutual Fund, said: “We are grateful to SEBI for its confidence in us. Our focus now is on building a fund house that puts investors first, with disciplined processes, clear communication and a strong focus on execution. We will take the time to build and launch products that are true to our investment philosophy and look forward to earning the trust of a new generation of investors.”

Saurabh Mukherjea, Chief Investment Officer, Marcellus Investment Managers, said: “Receiving SEBI’s final approval is a proud moment for everyone at Marcellus. Our purpose has always been to help channel household savings towards companies that allocate capital well and enable investors to participate in the wealth these businesses create over the long term. The mutual fund structure allows us to pursue this purpose at a much larger scale, through a format that is transparent, regulated and accessible. “

Founded in 2018, Marcellus Investment Managers has built its investment philosophy around the belief that long-term wealth creation begins with owning high-quality businesses. Its investment process starts with detailed, forensic analysis of a company’s financial statements and governance practices. This is followed by an assessment of the company’s competitive advantages, capital allocation track record and ability to sustain its business performance over the long term.

The firm’s approach is centred on identifying businesses with strong fundamentals and credible governance and constructing concentrated portfolios with a long-term investment horizon and low portfolio churn. This research-led approach has been the foundation of Marcellus’ investment offerings across its PMS and AIF businesses.

With the launch of its mutual fund business, Marcellus will seek to bring this investment philosophy to a wider set of investors while retaining the research discipline, forensic approach and long-term orientation that have defined the firm since its inception.