Jio BlackRock Gets SEBI Nod to Launch 4 Passive Index Funds

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Mumbai: Jio BlackRock Mutual Fund, a joint venture between Reliance-backed Jio Financial Services and global asset management giant BlackRock, has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch four new passive index funds.

The approved schemes include:

Jio BlackRock Nifty Midcap 150 Index Fund
Jio BlackRock Nifty Next 50 Index Fund
Jio BlackRock Nifty Smallcap 250 Index Fund
Jio BlackRock Nifty 8–13 Year G-Sec Index Fund

These funds aim to provide cost-effective, transparent investment options for retail and institutional investors, tracking major equity and government securities benchmarks.

Why It Matters

The move underscores Jio BlackRock’s aggressive strategy to expand its product suite after making a blockbuster entry into India’s mutual fund industry earlier this year. The firm has already launched debt-focused funds, attracting over ₹17,800 crore within just three days of its first New Fund Offers (NFOs), making it one of the top new entrants in the space.

By introducing passive index funds, the company aims to capitalize on the growing demand for low-cost investing solutions, which are gaining popularity among retail investors and High Net-worth Individuals (HNIs) in India.

Investor Benefits

Low-Cost Structure: Passive funds usually have lower expense ratios, making them attractive for long-term wealth building.
Wide Range of Choices: Exposure to large, mid, and small-cap segments, along with government securities, offers diversification.
Easy Access: Digital-first onboarding and SIP options starting as low as ₹500 make these funds accessible to new investors.

The NFO dates and detailed pricing information for the new schemes will be announced soon.

Digital-First Strategy

Leveraging Jio’s extensive digital distribution network and BlackRock’s Aladdin technology platform, the joint venture is disrupting traditional mutual fund distribution channels. The company’s approach focuses on direct plans, zero exit load, and transparent fee structures.

Industry Outlook

The introduction of four passive funds by Jio BlackRock is seen as a strategic move to capture the growing passive investing market in India, which is expected to see double-digit growth over the next five years. Industry experts believe that the JV’s strong branding, combined with technology-driven execution, could significantly boost its market share.

What’s Next?

Market participants anticipate more product launches, including thematic and international index funds, from Jio BlackRock later this year. If the initial response to its debt funds is any indication, the passive fund launch is likely to attract strong interest from retail and institutional investors alike.