Partial filling of mixed ferrite (Ni0.5Zn0.5Fe2O4; NZFO) nanoparticles into the amorphous carbon nanotubes (aCNTs) cavity is achieved by simple mixing of the aqueous dispersions of the two (aCNTs and NZFO) at room temperature. The process of incorporation of the nanoparticles into the aCNT cavity is solely mediated by the capillary action of the liquid. NZFO nanoparticles were homogeneously dispersed in the aqueous solution but after mixing they are sparsely distributed into the aCNT channel as a result of the capillary action. The encapsulation of the nanoparticles into the aCNTs amorphous shield was established by means of X-ray diffraction, transmission electron microscopy, Fourier transformed infrared spectroscopy, and Raman spectroscopic analysis. Such entrapment of the nanoparticles causes the composite nanotubes superparamagnetic in nature with blocking temperature (T B) at 15 K. However, compared to the powder NZFO nanoparticles, T B appears more sharply and at relatively lower temperature. Low filling density and the spatial confinement of the nanoparticles lessen the inter-particle interactions and the polydispersity within the NZFO nanoparticles which are manifested in their altered magnetic behavior.