Jio BlackRock Gets SEBI Nod to Launch 4 Passive Funds, Eyes Disruption in India’s ₹70 Trillion MF Market

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Regulatory Green Light and Strategic Entry

Jio BlackRock Asset Management, the joint venture between Reliance’s Jio Financial Services and global investment giant BlackRock, has received approval from SEBI to launch four passive mutual fund schemes. This marks BlackRock’s reentry into India after a sevenyear hiatus and signals a bold push into the country’s fastgrowing asset management space.

Key highlights:

SEBI’s approval allows the JV to begin operations within six months
The four passive funds will be factorbased, aiming to tweak traditional indices for higher alpha
The AMC will leverage BlackRock’s ALADDIN platform for risk analytics and portfolio management
Jio’s digital reach will be used to onboard retail investors, especially from Tier2 and Tier3 cities
The JV plans to open an office in GIFT City to facilitate foreign inflows and outbound investments
Executiononly platform license granted to Jio Payment Bank for seamless MF transactions

Market Impact and Competitive Outlook

India’s mutual fund industry has grown 23% YoY to ₹70 lakh crore, with individual investor assets at ₹42 lakh crore
Passive investing is gaining traction among younger investors seeking lowcost exposure
Jio BlackRock aims to become a dominant player in the passive space, targeting institutional flows from provident funds and family offices
Analysts expect the JV to challenge incumbents with its techfirst, directtoconsumer model

Sources: The Hindu BusinessLine, Economic Times, Financial Express, Investing.com.