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.

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.