What’s the story
JioBlackRock Mutual Fund is set to launch its first liquid policy in India, the JioBlackRock Liquid Fund.
The new fund offer (NFO) will open tomorrow and close on July 2.
The scheme aims to generate regular income by investing in a portfolio of money market and debt instruments, with residual maturity up to 91 days.
It is an open-ended liquid scheme with low interest rate and credit risk.
Fund management team and investment strategy
The JioBlackRock Liquid Fund will be managed by Arun Ramachandran, Siddharth Deb, and Vikrant Mehta.
The scheme shall be benchmarked against the Nifty Liquid Index A-I.
It plans to invest zero to 100% in debt instruments and money market instruments, with residual maturity up to 91 days.
The investment strategy is aimed at generating regular returns through a portfolio of debt and money market instruments while capturing term and credit spreads.
Risk profile and exit load details
The principal invested in the JioBlackRock Liquid Fund will be at low to moderate risk, according to the scheme’s riskometer.
The fund has received a provisional rating of [ICRA]A1+mfs from ICRA.
The exit load structure for the scheme is as follows: if an investor exits one day after allotment, the exit load will be 0.0070% of redemption proceeds; on day two it will reduce to 0.0065%, and so on until it reaches 0.0000% from day seven onward.
Other NFOs launching alongside liquid fund
Along with the JioBlackRock Liquid Fund, the fund house will also start an overnight fund and a money market fund.
The NFOs for these two schemes will open on June 30 and close on July 2.
Like the liquid fund, both these schemes have also been assigned an [ICRA]A1+mfs rating by ICRA.