Product innovation in the highly-competitive mutual fund space is not easy due to regulatory standards, but use of technology for greater transparency and improved customer service is the goal, Capitalmind Financial Services Pvt. Founder Deepak Shenoy said, after receiving in-principle approval from SEBI to launch a mutual fund."We wanted to start the mutual fund since a long time," Shenoy told NDTV Profit on Tuesday. "We're able to serve a much larger section of the society than a PMS. The idea is to build great level of customer service. We'll use lot of technology element to make this attractive and transparent."Capitalmind, which manages portfolio management services and alternative investment funds, has less room to offer products in debt segment. Mutual funds are more tax efficient for debt and hybrid investments, he said.In the mutual fund venture, Shenoy said quant will be a part of the core philosophy.On the current bull market phase of Indian equities, the fund manager said he does not see any valuation problem in mid-caps, but flagged concerns in some pockets of small-caps that are overvalued. "In the near term, I don't see any negative factors. Next five years, India is going to see a dramatic increase."Domestic Manufacturing Activity Likely To Pick Up, Says Capitalmind's Deepak ShenoyCapitalmind received in-principle approval from the markets regulator on Monday, incidentally on its tenth anniversary. Shenoy described the approval as "an honour and a privilege" and expressed gratitude for the opportunity."This approach has enabled us to provide unparalleled service, set new transparency standards, and maintain the highest regulatory compliance. Our focus on technology keeps us ahead, ensuring our clients achieve the best possible outcomes," Chief Operating Officer Vashistha Iyer said.Deepak Shenoy On India's Growth, SEBI Nod To Mutual Fund Foray And More | WatchPaytm Founder And Ex-Board Get SEBI Notice Over IPO Irregularities, Company Says Matter Already Disclosed