JioBlackRock Launches Nifty 50 Index Fund with No Exit Load; New Fund Offer Opens 5th August
By Shishta Dutta | Published at: Jul 29, 2025 09:33 AM IST
Mumbai, July 29, 2025: Jio BlackRock Mutual Fund has officially announced the launch of its JioBlackRock Nifty 50 Index Fund, an open-ended index fund designed to replicate the performance of the Nifty 50 Index. The New Fund Offer (NFO) is set to open on 5th August 2025 and will close on 12th August 2025. Following the NFO period, the scheme will reopen for ongoing subscriptions within five business days of allotment.
Key Highlights
| Scheme Details | Information |
|---|---|
| Fund Type | Open-ended Index Fund |
| Benchmark | Nifty 50 TRI |
| NFO Period | Aug 5–12, 2025 |
| Reopens | Within 5 business days post allotment |
| Exit Load | Nil |
| Minimum Investment | ₹500 (lump sum/SIP/switch-in) |
| Plans/Options | Direct Plan – Growth Option only |
| Fund Managers | Tanvi Kacheria (14 yrs), Anand Shah (23 yrs), Haresh Mehta (18 yrs) |
Investment Objective and Strategy
The scheme’s primary objective is to provide passive returns by investing predominantly in equity and equity-related instruments that constitute the Nifty 50 Index. Its strategy is to mirror the index composition and returns, aiming to minimise tracking errors, without engaging in active stock selection or portfolio management.
“The fund will not engage in active portfolio management and will focus on index replication,” the AMC clarified.
Asset Allocation & Investment Limits
Under normal circumstances, the fund will allocate:
| Asset Class | Minimum Allocation | Maximum Allocation |
|---|---|---|
| Nifty 50 Equity Constituents | 95% | 100% |
| Debt & Money Market Instruments | 0% | 5% |
The scheme also has provisions to take exposure up to 20% in equity derivatives (for non-hedging purposes), engage in securities lending up to 20% of its net assets, and invest up to 5% in units of other mutual funds, all subject to SEBI regulations.
Risk-o-Meter
According to the riskometer, both the JioBlackRock Nifty 50 Index Fund scheme and its benchmark (Nifty 50 TRI) are classified under “Very High Risk”. This indicates its suitability for investors with a high risk appetite and a long-term investment horizon.
Product Features
The fund offers flexible investment options including Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), and Systematic Withdrawal Plans (SWP).
- Systematic Investment Plan (SIP): Investors can opt for weekly, monthly, or quarterly SIPs, with a minimum of 6 instalments and a minimum amount of ₹500, or in multiples of ₹1 thereafter. The scheme also provides SIP top-up and pause facilities. Top-ups can be made in multiples of ₹50 or 10% every 6 or 12 months.
- Systematic Transfer & Withdrawal Plans (STP/SWP): For Systematic Transfer Plans (STP), available daily, weekly, monthly, or quarterly, a minimum of 6 instalments and a minimum amount of ₹100 is required. For Systematic Withdrawal Plans (SWP), offered weekly, monthly, or quarterly, a minimum of 6 instalments and a minimum amount of ₹500 is required.
Other Key Details
- Transaction Charges: The scheme has no transaction charges, though a stamp duty of 0.005% applies.
- NAV Disclosure: The Net Asset Value (NAV) will be disclosed daily, up to four decimal places.
- Tracking Error Target: The fund aims to achieve a tracking error of ≤ 2% on a rolling 1-year basis.
- Tracking Difference Target: The target tracking difference is 50 bps (above Total Expense Ratio).
- SEBI Circular Compliance: The scheme adheres to Clause 1.9 of the SEBI Master Circular (June 27, 2024) for benchmarking and Clause 12.11 for securities lending.
How to Apply
Investors can subscribe to the JioBlackRock Nifty 50 Index Fund through various channels:
- Physical application at Official Points of Acceptance (AMC/CAMS).
- Online platforms, including the AMC website, mobile app, CAMS (myCAMS), MFCentral, and NSE/BSE platforms.
- Utilising the ASBA facility during the NFO period for applications in dematerialised form.
Insights For Investors
- Low-Cost Passive Exposure: Offers exposure to India’s 50 largest and most liquid companies through a Nifty 50 index strategy, with no exit load and a minimum investment of Rs. 500.
- Index-Based Approach: Aims to replicate the Nifty 50 index performance without active stock selection, providing market-linked returns.
- Risk Category: Classified as a “Very High Risk” product, reflecting the inherent volatility of equity markets.
- Tracking Efficiency: Targets an annual tracking error of 2% or less and aims for a low tracking difference of 50 basis points.
- Management and Technology Support: Operated by a professional management team with digital-first infrastructure for seamless investing and operations.
About Jio BlackRock Mutual Fund
Jio BlackRock Mutual Fund is a strategic joint venture formed between Reliance Industries’ Jio Financial Services and BlackRock, a global leader in asset management. Headquartered in Mumbai and registered with SEBI, this partnership aims to leverage the strengths of both entities. The JioBlackRock Nifty 50 Index Fund marks one of the initial passive offerings under this collaboration, underscoring the fund house’s commitment to providing low-cost, broad-market access to retail investors across India.
Note: The Scheme Information Document was approved by the Board of Directors on May 15, 2025, and is dated July 28, 2025.
REF: https://portal.amfiindia.com/spages/14279.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
