JioBlackRock Secures SEBI Nod to Launch Four Passive Index Funds Across Equity and Gilt Segments

Mumbai, July 16, 2025: JioBlackRock Mutual Fund has received crucial regulatory approval from the Securities and Exchange Board of India (SEBI) to introduce four new passive index schemes. This expansion marks a significant step for the joint venture into both equity and debt segments of the Indian mutual fund market. The approved schemes are designed to offer investors low-cost, diversified options, aiming for minimal tracking error and enhanced transparency across various market capitalisations and government securities.

Key Scheme Details and Objectives

The equity schemes will predominantly invest between 95% and 100% of their assets in securities that constitute their respective benchmarks, with the remaining allocation in debt or money market instruments for liquidity. The gilt fund will focus on top-traded Government Securities (G-Secs) with maturities ranging from 8 to 13 years, carrying zero credit risk, aligning with the A-III risk category.

Investment Highlights

• JioBlackRock is positioning these new offerings to be accessible and efficient for investors:
  • Minimum Investment: A low entry barrier of ₹500 is set for both lump sum investments and Systematic Investment Plans (SIPs) across all schemes.
  • Exit Load: There will be no exit load applicable to any of these four schemes, providing investors with liquidity and flexibility.
  • Fund Managers:
    • Equity Index Funds: Ms. Tanvi Kacheria, Mr. Anand Shah, and Mr. Haresh Mehta will manage the equity-oriented index funds.
    • G-Sec Index Fund: Mr. Vikrant Mehta, Mr. Siddharth Deb, and Mr. Arun Ramachandran will oversee the gilt index fund.
  • Tracking Error Goals: The equity funds aim for a tracking error of ≤2%, while the gilt fund targets a tracking difference of ≤1.25% per annum.
  • Index Rebalancing Frequency: Equity indices will be rebalanced semi-annually (in March and September), and the Gilt index will be rebalanced monthly, based on liquidity and maturity criteria.

Index Methodology Snapshots

The schemes are designed to precisely replicate the performance of their underlying indices:

• Nifty Next 50: This index comprises the 50 companies with market capitalisation immediately following the Nifty 50, offering exposure to India’s emerging large-cap segment.
• Nifty Midcap 150: This index comprises 150 companies ranked 101-250 based on full market capitalisation from the NIFTY 500 Index.
• Nifty Smallcap 250: This index comprises 150 companies ranked 101-250 based on full market capitalisation from the NIFTY 500 Index.
• Nifty 8–13 yr G-Sec Index: This index includes the three most liquid Government of India bonds with outstanding issuance of ₹5,000 crore or more, and residual maturities between 8 and 13 years. Weights are assigned based on a 40:60 ratio of liquidity to outstanding value.

Regulatory Compliance & Risk Classifications

All schemes adhere to SEBI’s Master Circular for Mutual Funds issued on 27 June 2024.

• Risk-o-meter: The equity schemes are classified as “Very High” risk, reflecting the inherent volatility of equity investments.
• Gilt Scheme Risk: The Nifty 8–13 yr G-Sec Index Fund is categorised as having “Relatively High Interest Rate Risk, Relatively Low Credit Risk” (A-III under the PRC matrix).
• Investment Restrictions: The schemes are explicitly designed not to invest in overseas securities, derivatives (for equity schemes), REITs/InvITs, or structured obligations.

Strategic Positioning

JioBlackRock Mutual Fund highlights that these passive offerings align with the growing investor demand for cost-effective, rules-based investment exposure across key segments of India’s capital markets. The introduction of the Nifty 8–13 yr G-Sec Index Fund is particularly timely, reflecting increasing retail interest in long-duration government bonds amidst dynamic interest rate cycles. Each scheme is meticulously designed to replicate its benchmark with disciplined portfolio rebalancing and minimal turnover, ensuring full compliance with SEBI’s guidelines on passive investing, portfolio concentration, and liquidity management.

Road Ahead

JioBlackRock’s SEBI approval to launch four passive index funds marks a strategic expansion into India’s fast-growing low-cost investment space. With offerings across large-mid, midcap, smallcap equities, and long-duration government bonds, the AMC is catering to a wide investor base seeking diversified, rules-based exposure. The ₹500 minimum investment, zero exit load, and disciplined tracking error targets make these funds attractive for both first-time and seasoned investors. As market appetite for passive strategies grows, Jio BlackRock is well-positioned to capture flows across equity and debt categories, especially amid rising interest in G-Secs.

About Jio BlackRock Mutual Fund

JioBlackRock Mutual Fund is a joint venture between Reliance Industries Limited’s Jio Financial Services and global asset manager BlackRock. The AMC is headquartered in Mumbai and is fully SEBI-registered to manage equity, debt, and hybrid mutual fund schemes. The fund house focuses on offering innovative and accessible financial solutions, leveraging Jio’s digital reach and BlackRock’s investment expertise.

REF:

https://www.sebi.gov.in/filings/mutual-funds/jul-2025/jioblackrock-nifty-8-13-yr-g-sec-index-fund_95307.html

https://www.sebi.gov.in/filings/mutual-funds/jul-2025/jioblackrock-nifty-smallcap-250-index-fund_95305.html

https://www.sebi.gov.in/filings/mutual-funds/jul-2025/jioblackrock-nifty-midcap-150-index-fund_95302.html

https://www.sebi.gov.in/filings/mutual-funds/jul-2025/jioblackrock-nifty-next-50-index-fund_95303.html

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