NFO Alert: JioBlackRock Money Market Fund opens today, offers low interest rate risk and moderate credit risk

Jio BlackRock Mutual Fund has launched the Jio BlackRock Money Market Fund, and the NFO of the fund is open for subscription until July 2. The investment objective of the scheme is to generate regular income through investment in a portfolio comprising money market instruments with a residual maturity of up to one year.

The fund is an open-ended debt scheme investing in money market instruments, with relatively low interest rate risk and moderate credit risk.

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The scheme is suitable for investors seeking regular income over the short term and who want to generate income by investing in money market instruments, according to the Scheme Information Document (SID) of the fund.

The scheme will be benchmarked against the NIFTY Money Market Index A-I and will be managed by Vikrant Mehta, Arun Ramachandran, and Siddharth Deb.

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The scheme will offer only direct plans and will provide solely a growth option. The minimum application amount for lump sum investment is Rs 500 and any amount thereafter.

The minimum amount for switch-in to the scheme is Rs 500, and any amount thereafter. The minimum amount for weekly, monthly, and quarterly Systematic Investment Plans (SIPs) is Rs 500 and in multiples of Re 1 thereafter, with a minimum of six installments each.

The exit load on this money market fund is nil. Investors may avail themselves of the SIP Top-up facility, which allows them to increase their SIP installments at predefined intervals. This feature enhances investors’ flexibility to invest higher amounts during the SIP tenure. Investors can use the Top-up facility to increase their SIP installment amount by a minimum of Rs 50 and in multiples of Rs 50. Alternatively, they can opt to increase the SIP installment amount by 10% and in multiples of 5%.

The scheme will allocate 0–100% to money market instruments having a residual maturity of up to one year. The investment strategy aims to generate regular returns through a portfolio of money market instruments, seeking to capture term and credit spreads. The scheme will endeavor to develop a well-diversified portfolio of money market instruments.

Every investment opportunity in money market instruments will be assessed for credit risk, interest rate risk, liquidity risk, derivatives risk, and concentration risk, according to the Scheme Information Document (SID) of the fund.

The principal invested in the scheme will carry low to moderate risk, as indicated by the scheme’s riskometer.

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According to a release by ICRA, the provisional rating assigned to the fund is [ICRA]A1+mfs. The rating agency further mentioned that as the scheme is launching, the provisional rating is based on the indicative/allocated portfolio of the scheme with the credit score being comfortable at the assigned rating level.

The provisional rating for the JioBlackRock Money Market Fund will be finalised upon the launch of the scheme, and analysis of the credit score of the scheme for at least three months, post launch, and its meeting the benchmark score for the assigned rating, the ICRA release said.

In addition to the JioBlackRock Money Market Fund, the fund house is also launching an overnight fund and a liquid fund as well. The new fund offer (NFO) of overnight fund and liquid fund are open for subscription now and will close on July 2.

ICRA has assigned [ICRA]A1+mfs rating to the JioBlackRock Liquid Fund and the JioBlackRock Overnight Fund as well.

According to the Sebi mandate, money market funds make investment in money market instruments having maturity upto one year.