JioBlackRock to Launch First Active Equity Product on September 23

Kolkata, Sep 11 – JioBlackRock Mutual Fund has announced to roll out its first equity offering (Active) in the form of JioBlackRock FlexiCap Fund. The NFO (New Fund Offer) starts on September 23. The fund will be launched on the SAE (Systematic Active Equity) platform, and the company has chosen not to set a fundraising target for the initial offer period.

Focus on Technology-Driven Fund Management

As per the Chief Investment Officer, Mr. Rishi Kohli, the FlexiCap will be technology-driven, and any human bias (in investing) shall be reduced through the use of the latest technology. Almost 95% of the total investment process shall be powered by BlackRock’s in-house SAE platform, which takes into account over 400 signals for taking portfolio decisions.

The purpose of relying on the latest technology for investment and portfolio management is to ensure the highest level of discipline and reduce cognitive biases in the fund management. The fund shall operate with a controlled active risk of around 3-4% lower than the industrial average with proper downside protection and consistent ROI.

Simulation Shows Promising Outperformance

Kohli highlighted that a 10-year simulation of the model suggested potential outperformance of 3-4 percent over benchmark indices, in line with results achieved in other BlackRock funds in markets such as China and Japan.

“In an uncertain market environment, where equity markets have been tough, we believe it’s a good time to launch a product that manages risk on the lower side compared to other active funds and still aims for attractive alpha in the long run,” Kohli noted.

Expansion Plans and Digital Distribution

The FlexiCap Fund is the first of several active equity products in the pipeline. JioBlackRock plans to launch three to four additional active equity funds this fiscal year, followed by other products, including ETFs. Formed through a partnership between Jio Financial Services and BlackRock, the fund house secured its license in May and currently manages about ₹18,000 crore across eight cash and index funds. For now, the company will continue to emphasize digital distribution channels.

The fund house has not disclosed any asset under management (AUM) targets or a break-even timeline for the new offering.

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