The entry of Jio-Blackrock into the already buzzing mutual fund industry assumes importance when seen in the context of analyst comments. (picture for representational purposes only)
| Photo Credit: FRANCIS MASCARENHAS
Jio Blackrock AMC, the much-talked-about joint venture between Jio Financial Services and American investment management firm Blackrock, introduced its first new fund offer on Tuesday.
The Asset Management Company (AMC) will pursue only direct mutual fund business through its tech platform. The company will use AI platform to pick stocks and has systems to narrow the risk of downside volatility between 2-3%, said Rishi Kohli, chief investment officer, Jio Blackrock AMC. Through technology, the company “aims to transform traditional and alternative data — ranging from social media conversations to satellite data — into investable insights for the benefit of the Indian investors,” the company said, adding it would focus on long-term returns, Mr. Kohli added.
The entry of Jio-Blackrock into the already buzzing mutual fund industry assumes importance when seen in the context of analyst commentary and industry data.
The mutual fund market is at present a largely distributor-dominated market despite the proliferation of direct investment through brokerage applications. Large distributors constituted a little more than half of the commissions market, according to data in a report by Kotak Institutional Equities(KIE). Another 23% of the commissions share was captured by small agents, comprising 75% of the market share of commissions in 2025, KIE said in a report. “We believe that India will remain a commission-oriented market for mutual funds, even as the share of direct equity has been rising steadily,” KIE said in its report.
In another report, KIE said that the entry of Jio-Blackrock into the industry can actually accentuate the trend of increasing passive funds. “India has largely stayed an active market but it runs the risk of passive funds increasing their share in overall shareholding of companies and the market over time. The entry of Blackrock-Jio with it focus on passive funds may accelerate the process, as other asset management companies may be forced to launch more passive funds to counter the disruption,” the research report read.
Jio Blackroack, however, introduced its first fund as an active flexicap fund, contrary to expectations.
The management of the new entrant said they would be using a systematic investment method tested by Blackrock and such a method would help them weather volatile times better.
Published – September 23, 2025 09:26 pm IST