Jio BlackRock Receives SEBI Nod to Launch Four New Passive Funds

Jio BlackRock, the joint venture between Jio Financial Services and BlackRock in a 50:50 partnership, has secured regulatory approval from the Securities and Exchange Board of India (SEBI) to introduce four passive investment funds. This move marks a significant milestone in the company's journey to expand its presence in the Indian mutual fund space.

These funds aim to cater to different risk profiles and investment goals, offering investors exposure to a variety of market segments and government securities.

Overview of the Approved Passive Funds

Jio BlackRock will launch the following four passive funds:

1. JioBlackRock Nifty Midcap 150 Index Fund

2. JioBlackRock Nifty Next 50 Index Fund

3. JioBlackRock Nifty Smallcap 250 Index Fund

4. JioBlackRock Nifty 8-13 yr G-Sec Index Fund

Each of these funds is designed to mirror a specific index, giving investors low-cost access to diversified portfolios.

JioBlackRock Nifty 8-13 Yr G-Sec Index Fund

The JioBlackRock Nifty 8-13 yr G-Sec Index Fund is an open-ended scheme that seeks to replicate or track the performance of the Nifty 8-13 year G-Sec Index.

• Risk Profile: The fund is categorized as having relatively high interest rate risk but relatively low credit risk, as it invests in government securities.

• Plan Options: This scheme will be available only under a direct plan and will offer only a growth option—making it suitable for long-term investors looking to avoid dividend payouts.

• Exit Load: Investors can exit the scheme without any exit load, offering flexibility and liquidity.

This fund could attract conservative investors looking for government bond exposure over a medium-to-long duration.

JioBlackRock Nifty Smallcap 250 Index Fund

This fund will also be an open-ended scheme, designed to mirror the Nifty Smallcap 250 Index, offering exposure to the broader small-cap segment.

• Risk Category: The fund carries a "very high" risk rating, which aligns with the typically volatile nature of small-cap stocks.

• Minimum Investment: During the New Fund Offer (NFO), the minimum application amount will be ₹500, and the same threshold will apply for ongoing investments post-NFO.

• Plan and Options: Like the G-Sec fund, it will offer only a direct plan and is geared towards investors who prefer managing investments independently.

This scheme is ideal for risk-tolerant investors seeking higher growth potential in the long run.

JioBlackRock Nifty Midcap 150 & Nifty Next 50 Index Funds

While detailed features of the other two funds—Nifty Midcap 150 Index Fund and Nifty Next 50 Index Fund—have not been disclosed yet, both are expected to follow similar passive investment structures, replicating their respective benchmark indices.

These funds will help diversify the Jio BlackRock product portfolio, catering to investors targeting mid-cap and large-cap segments beyond the traditional Nifty 50.

Jio Financial Services Stock Update

Following the fund approval news, shares of Jio Financial Services were trading 0.5% lower at ₹319.5. However, the stock has still managed to deliver an 8.7% gain over the past month, reflecting investor confidence and growing anticipation around the mutual fund business expansion.

As one of the newest entrants into the Nifty 50 index, Jio Financial Services' strategic partnership with BlackRock is expected to reshape the competitive landscape of India’s passive fund market.