Shares of Jio Financial Services Ltd gained over 1 per cent in Tuesday’s trade after JioBlackRock Mutual Fund, the 50:50 joint venture between Jio Financial Services and BlackRock, launched its first set of five index funds. BlackRock’s re-entry into the Indian asset management space and its renewed focus on the country’s underpenetrated passive investing segment are being closely watched by JFS investors.
The stock rose 1.4 per cent to hit a high of Rs 338.45 on the BSE, over its previous close of Rs 333.55. At 10:28 am, the scrip was trading 0.45 per cent higher at Rs 335.05. With today’s move, the stock is now up 70 per cent from its 52-week low of Rs 198.60. The stock has been a performer, surging 33 per cent in the past six months.
The New Fund Offering (NFO), which opened on August 5 and runs until August 12, includes schemes based on the Nifty 50, Nifty Next 50, Nifty Midcap 150, Nifty Smallcap 250, and a G-Sec index.
Jio Financial Services currently commands a market capitalisation of Rs 2.12 lakh crore, with a price-to-earnings (PE) ratio of 400.18.
BlackRock had exited the Indian mutual fund industry in 2018 following its split with DSP Group. Its return, this time in an equal partnership with Reliance’s financial arm, signals a fresh push to establish a long-term presence in a market where passive products comprise just 20 per cent of the mutual fund industry—compared to nearly 50 per cent in the US and Europe.
Earlier, Hitesh Sethia, President and CEO of JFS, said the collaboration is an exciting partnership between JFS and BlackRock, “one of the largest and most respected asset management companies globally.”
“The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products. Jio BlackRock will be a truly transformational, customer-centric and digital-first enterprise with the vision to democratise access to financial investment solutions and deliver financial well-being to the doorstep of every Indian,” Sethia said.
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