JioBlackRock to offer full MF bouquet in 3 years; plans more SIFs, ETFs, GIFT City products

Jio BlackRock expects to offer a full bouquet of mutual fund products over the next three years as the asset manager, after entering the specialised investment fund segment, prepares to expand into more SIFs, exchange-traded funds (ETFs) and offshore investment products through GIFT City, a top company official said.

Jio Black Rock AMC Chief Investment Officer Rishi Kohli said the company plans to launch at least one more SIF in the equity long-short category within the next year, following the rollout of its maiden Prism Hybrid Long-Short fund.

JioBlackRock AMC is a JV between Mukesh Ambani-controlled Jio Financial Services and global Asset Management firm BlackRock.


It also expects to introduce its first ETFs in the coming months, while 10 outbound products have been shortlisted for GIFT City, several of which are awaiting regulatory approvals.

The Prism SI fund is a multi-strategy hybrid offering designed to generate annual returns of 9-11 per cent while capping fund-level risk at two per cent.

Kohli said the Rs 10 lakh minimum investment threshold for SIFs places the product between traditional mutual funds and portfolio management services (PMS), creating what he described as a "missing middle" in the investment landscape.

He said the strategy is aimed at investors seeking better risk-adjusted returns than fixed deposits or liquid funds without taking concentrated equity exposure.

Kohli said the launch of ETFs is currently undergoing fine-tuning of BlackRock's global investment systems for Indian operational and market requirements.

"Once the platform is ready, we expect to scale rapidly with multiple ETF launches," he said.

On the GIFT City operations, Kohli said the objective is to provide Indian investors easier access to global active investment strategies by reducing friction in digital access, moving beyond standard benchmark-linked products such as the S&P and NASDAQ indices.

The AMC has shortlisted 10 products for Gift City operations and at least one or two will launch soon, as filings for regulatory clearances have been initiated.

Jio BlackRock currently manages assets worth around Rs 18,000 crore, comprising Rs 12,500 crore in debt and income funds and Rs 5,500 crore in equity funds. The AMC has 14 funds, and the SIF will be its 15th product.

While declining to disclose a fund-raising target for the maiden Prism SI fund, Kohli said high-net-worth family offices and large wealth advisers typically invest after the new fund offer period, usually within a month of launch.

He said the specialised investment fund industry has grown to around Rs 14,000 crore in assets and is expanding by more than Rs 500 crore every month.

According to Kohli, the range-bound market over the past two years has increased investor interest in systematic strategies delivering around 10 per cent returns, particularly among investors shifting money from fixed deposits and liquid funds.

The Prism SI fund uses BlackRock's Aladdin risk management platform, which applies data-driven investment controls that fund managers cannot override to take excessive risk.

The strategy is built around four pillars -- collars, merger arbitrage, InvITs and REITs, and AAA-rated fixed-income assets -- to maintain liquidity while seeking to deliver "fixed income-plus" returns.

The fund offers zero exit load, twice-weekly redemptions through an interval structure and long-term capital gains tax treatment similar to equity investments for holdings exceeding 12 months.

The NFO for the maiden SIF closes on July 13.