Marcellus Investment Managers Secures SEBI Approval to Enter Indian Mutual Fund Industry — September 30, 2026

Marcellus Investment Managers has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch its mutual fund operations. The green light marks a pivotal milestone for the asset management firm, allowing it to transition its proprietary investment strategies from the high-ticket portfolio management services (PMS) domain to the broader retail mutual fund landscape.

Founded in 2018 by Saurabh Mukherjea, the former chief executive of Ambit Capital, Marcellus has primarily managed assets for high-net-worth individuals (HNIs) and family offices through PMS and Category III Alternative Investment Funds (AIFs). Under existing regulations, PMS offerings require a minimum ticket size of ₹50 lakh, while AIFs carry a minimum threshold of ₹1 crore. The mutual fund license enables Marcellus to broaden its distribution reach, offering retail investors access to its strategies through systematic investment plans (SIPs) and smaller lump-sum allocations.

Democratising the Quality Investing Strategy

Marcellus built its market presence on a distinct investing framework focused on forensic accounting, capital allocation efficiency, and corporate governance. Mukherjea and his team popularized long-term, low-churn investing in Indian equities through flagship PMS strategies like "Consistent Compounders," "Kings of Capital," and "Little Champs".

According to the firm, entering the mutual fund industry represents the next phase of its corporate evolution. The asset manager aims to channel household savings into high-quality Indian corporations with strong records of governance and capital efficiency, extending its long-standing philosophy of transparent, research-backed wealth creation to retail households across Tier 1, 2, and 3 locations.

To prepare for its mutual fund rollout, the firm established dedicated entities:

• Marcellus Asset Management Private Limited: Appointed to serve as the investment manager for the upcoming fund house.
• Marcellus Trustee Private Limited: Formed to act as the trustee entity for the mutual fund trust structure.

Institutional Rush into Mutual Funds

Marcellus’s entry into the mutual fund space mirrors a broader trend among boutique portfolio managers and wealth management firms in India. Over the past two years, several prominent PMS and AIF houses, including ASK Investment Managers and Nuvama Wealth Management, have sought mutual fund licenses from SEBI.

The regulatory environment has increasingly incentivized this crossover:

• Specialised Investment Funds (SIFs): Regulators have introduced new investment vehicles within the mutual fund framework that allow institutional-style strategies to be offered with a lower barrier of entry (₹10 lakh) compared to traditional PMS and AIFs.
• Tax Efficiencies: Mutual fund structures offer key structural and taxation advantages over PMS and AIFs, avoiding fund-level churn taxation and simplifying portfolio accounting for investors.
• Deepening Retail Participation: Strong domestic equity inflows via monthly SIP books have driven Indian asset management to record high AUM levels, making a mutual fund platform indispensable for boutique managers seeking scalable growth.

With regulatory clearance secured, Marcellus will now fulfill statutory registration formalities, establish required custody and technology infrastructure, and file offer documents with SEBI before launching its inaugural open-ended fund schemes.

Tags: Marcellus Investment Managers SEBI Saurabh Mukherjea Mutual Funds Indian Equities