Jio BlackRock gets Sebi approval to launch four passive index schemes

New offerings by Jio BlackRock include Nifty midcap, next 50, smallcap, and 8-13 year G-Sec index funds

Jio BlackRock Mutual Fund has secured approval from the Securities and Exchange Board of India (Sebi) to launch four new passive investment schemes, regulatory filings on Sebi’s website showed on Wednesday. 

 

The approved schemes include:  1. JioBlackRock Nifty Midcap 150 Index Fund: This open-ended fund will replicate the Nifty Midcap 150 Index and invest in mid-sized companies, providing diversified exposure across the midcap segment.  2. JioBlackRock Nifty Next 50 Index Fund: This fund aims to track the Nifty Next 50 Index, comprising companies ranked 51 to 100 by market capitalisation. It offers investors a way to participate in potential large-cap entrants.  3. JioBlackRock Nifty Smallcap 250 Index Fund: Targeting the smallcap segment, this fund will passively invest in stocks comprising the Nifty Smallcap 250 Index, designed for investors with a higher risk appetite looking for long-term capital appreciation.  4. JioBlackRock Nifty 8–13 yr G-Sec Index Fund: Unlike the others, this scheme will track the performance of medium- to long-term government securities (gilts) in the 8–13 year maturity range. It is aimed at fixed-income investors seeking lower credit risk with higher interest rate sensitivity. 

All four schemes are structured as index funds and will only offer direct plans with growth options.  All four approved schemes are structured with no exit loads, minimum application amounts as low as ₹500, and standardised asset allocations in line with Sebi norms.   Each new fund will open for subscription during a New Fund Offer (NFO) period lasting between three and 15 calendar days, as mandated by Sebi. Exact dates, however, are yet to be announced.

Jio BlackRock joint venture

Jio BlackRock is a joint venture between Reliance Industries, through its subsidiary Jio Financial Services, and BlackRock, one of the world’s largest asset managers.  The 50:50 joint venture was first announced in July 2023 and received Sebi approval to start a mutual fund (MF) business in late May of this year. Since then, Jio BlackRock has gone on to receive approval to operate as an investment adviser and to commence operations as a brokerage firm.  Sebi’s latest clearance sets the stage for Jio BlackRock to further expand its footprint in India's growing passive fund space.