Jio BlackRock Mutual Fund has been approved to launch four new investment schemes in the Indian market. The market regulator, SEBI, has given the green light to this joint venture to launch four index funds. All these schemes will be offered as passive investment options, available in direct plan and growth option.
Four Different Investment Focus Schemes
This time, the four funds that Jio BlackRock is preparing to launch have been designed keeping in mind the needs of different investors.
Jio BlackRock Nifty Midcap 150 Index Fund
This scheme will track the Nifty Midcap 150 Index. Under this fund, investments will be made in companies that fall into the midcap category. This will provide investors with the opportunity to participate in the growth potential of mid-size companies. Being an open-ended structure, investors can enter or exit at any time.
Jio BlackRock Nifty Next 50 Index Fund
This fund will track companies included in the Nifty Next 50 Index. That is, companies that are not currently in the top 50 but have the potential to become large-cap in the future. This fund will provide investors with an opportunity to invest in potential future giants.
Jio BlackRock Nifty Smallcap 250 Index Fund
Under this fund, investments will be made in companies linked to the Nifty Smallcap 250 Index. This scheme is designed for investors who expect higher returns in the long term and are willing to take slightly more risk. Investing in the smallcap segment can be risky, but it also has the potential for higher growth.
Jio BlackRock Nifty 8-13 Year G-Sec Index Fund
This scheme will invest in government securities (gilts) with a maturity period between 8 to 13 years. This scheme is suitable for investors looking for low credit risk and stable returns. It will be more sensitive to fluctuations in interest rates, so a long-term perspective will be necessary.
Minimum Investment Amount and Other Conditions
The minimum investment amount in all these schemes has been kept at only ₹500, allowing even small investors to easily participate. A special feature is that there will be no exit load in these schemes. That is, investors can sell their units without any fees.
These funds will be available only in direct plan and growth option. That is, there will be no dividend option in these schemes, and whatever profit the fund makes will be added to the value of the units.
What is the Background of Jio BlackRock
Jio BlackRock is a joint venture established in a 50:50 partnership between Jio Financial Services of Reliance Industries and BlackRock of the US. BlackRock is one of the largest asset management companies in the world. This partnership is focused on promoting passive investment in the Indian market and the development of technology-based financial products.
When Can You Buy Fund Units
The subscription for each scheme will open under the New Fund Offer (NFO). The duration of these NFOs will be between 3 to 15 days. However, the exact dates have not yet been announced. Information about the subscription window will be provided by the fund house soon.
Activity is Increasing Rapidly After SEBI Approval
Announced in July 2023, this joint venture has received SEBI approval to start its mutual fund business at the end of May 2025. After that, the company has also been approved to operate as an investment advisor and brokerage firm.
Why Passive Funds Are Becoming Popular
In recent years, the demand for passive funds has increased rapidly because the expense ratio in these funds is much lower than that of active funds. Also, their performance is completely linked to the relevant index. In such a situation, the investor already knows what the fund is linked to and its return depends on the performance of which index.
