Jio BlackRock launches eight funds across equity and debt to cater to diverse investment goals

Jio BlackRock Mutual Fund, the collaboration between Reliance Jio and BlackRock, has entered India’s asset management sector, unveiling eight mutual fund schemes. The line-up stretches from equity to liquid and debt funds, combining BlackRock’s international portfolio management with Jio’s extensive domestic reach. This operational debut immediately places the company beside established competitors, targeting retail, HNI, and institutional investors with a focus on broad accessibility and scale. The range includes both passively managed and actively managed products. Jio BlackRock aims to support varying investor targets, from those seeking short-term liquidity to those pursuing sustained capital growth.

The new collection features JioBlackRock Liquid Fund, Money Market Fund, Overnight Fund, Nifty Midcap 150 Index Fund, Nifty Next 50 Index Fund, Nifty Smallcap 250 Index Fund, Nifty 8-13 yr G-Sec Index Fund, and Nifty 50 Index Fund. Investors can select from options that align with their specific risk appetites and performance expectations. These initiatives intensify competition in India’s mutual fund space by integrating platforms such as BlackRock’s Aladdin for risk management and offering competitive fees.

JioBlackRock Liquid Fund operates as an open-ended liquid scheme, structured for those prioritising high liquidity and steady returns from short-term cash surpluses. At launch, the fund’s assets under management (AUM) stand at Rs 68.5 billion, with 98.5% held in debt instruments, notably Treasury Bills and commercial papers from firms including Bajaj Finance and Tata Capital. The yield to maturity (YTM) measures 5.8%, outpacing the category average. Portfolio credit is weighted towards caution: 76.1% AAA-rated holdings and 22.4% sovereign securities.

The Money Market Fund is intended for investors parking funds up to a year, with a debut AUM of Rs 48.5 billion. The portfolio is concentrated in high-grade money market assets: 97.6% debt, the rest in cash. Risk and portfolio management utilise BlackRock’s Aladdin platform. The product also suits those planning systematic transfers to equity funds, enabling smooth reallocation between asset classes.

JioBlackRock Overnight Fund, focused on very short-term needs, invests solely in overnight instruments including Tri-Party Repos and T-bills to limit both interest rate and credit risks. Launched with an AUM of Rs 16.2 billion, the fund tracks the Nifty 1D Rate Index. As of now, 4.5% of assets are in RBI T-bills, with the remainder in cash equivalents—designed for cautious investors requiring daily liquidity and consistent returns.

Equities

Turning to equities, the Nifty Midcap 150 Index Fund provides exposure to India’s mid-cap companies. With an AUM of Rs 850 million, the fund mirrors its benchmark by holding 150 stocks. Sector exposures are led by financials (21.4%), industrials (19.3%), and materials (12.3%). A tracking error of 0.16% is maintained using BlackRock’s technology. Key constituents include Max Healthcare, BSE, and Suzlon Energy.

The Nifty Next 50 Index Fund, starting with Rs 666.9 million AUM, grants access to emerging large-cap firms just beyond the Nifty 50. Leading allocations are InterGlobe Aviation, Hindustan Aeronautics, and Divis Labs. The fund invests 99.7% in equities, reports a tracking error of 0.13%, and keeps an expense ratio of 0.15%. Sectors represented include financials (19.5%), energy (15.4%), and consumer staples (14.2%).

For those seeking smaller company exposure, the Nifty Smallcap 250 Index Fund commenced with an AUM of Rs 890 million. It tracks the Nifty Smallcap 250 Index and consists of 250 stocks, with a 99.6% equity allocation. Main holdings comprise MCX, Laurus Labs, and CDSL. This fund addresses long-term investment horizons requiring tolerance for heightened volatility, posting a tracking error of 0.22% and an expense ratio of 0.15%.

Concluding the suite, the Nifty 50 Index Fund and the Nifty 8-13 yr G-Sec Index Fund target investors looking for large-cap equity and stable fixed-income exposure, respectively. The Nifty 50 Index Fund, introduced with Rs 721.6 million AUM, invests primarily in equities, notably HDFC Bank, ICICI Bank, and Reliance Industries. Meanwhile, the Nifty 8-13 yr G-Sec Fund holds Rs 346 million AUM in Government of India bonds, maintains a 0.56% tracking error, and features a conservative credit allocation.