Jio BlackRock has received Sebi approval to launch four passive index funds tracking Nifty indices and Indian government bonds. The funds will track four indices -- Nifty Midcap 150, Nifty smallcap 250, Nifty Next 50, and the benchmark index tracking Indian government bonds with 8-13 years maturity.

Jio BlackRock Mutual Fund Gets Sebi Approval For 4 Passive Schemes; Details Here

Jio BlackRock's Ambitious Expansion: Four New Passive Funds Approved

Jio BlackRock Asset Management has received the green light from the Securities and Exchange Board of India (SEBI) to launch four new passive index funds. This strategic move marks a significant expansion for the joint venture, leveraging both Jio's extensive digital reach and BlackRock's global expertise in passive investment management.

These funds will track four key indices:

Nifty Midcap 150
Nifty Smallcap 250
Nifty Next 50
A benchmark index tracking Indian government bonds (8-13 years maturity)

This announcement follows the successful launch of three debt mutual fund schemes in July, raising an impressive Rs 17,800 crore (approximately $2.1 billion USD). These initial offerings, the JioBlackRock Overnight Fund, JioBlackRock Liquid Fund, and JioBlackRock Money Market Fund, attracted a diverse investor base including over 90 institutional investors and more than 67,000 retail investors. The three-day New Fund Offer (NFO) was reportedly one of the largest in India's cash/debt fund segment, catapulting JioBlackRock Asset Management into the top 15 asset management companies by Debt Assets Under Management.

A Disruptive Approach:

Jio BlackRock is taking a unique approach to the Indian market, aiming to bypass traditional distributor networks and offer funds directly to investors. This strategy is expected to reduce expense ratios and make investing more accessible. By leveraging Jio's existing digital platforms, like MyJio and Jio Finance, the company intends to reach its massive user base of 8 million active financial services users.

BlackRock's Expertise:

The partnership with BlackRock, the world's largest fund manager, brings significant expertise in passive investment strategies to the venture. BlackRock's renowned Aladdin investment management platform will further enhance the offerings, providing differentiated products in a competitive market.

Looking Ahead:

Jio BlackRock plans to launch nearly a dozen more equity and debt funds by the end of the year, solidifying its position in India's burgeoning Rs 72.2 lakh crore mutual fund market. This ambitious expansion, coupled with its innovative distribution strategy, positions Jio BlackRock for substantial growth in the years to come.

Disclaimer: Network18 and TV18 – the companies that operate news18.com – are controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

About the Author: Mohammad Haris