For many investors, JioBlackRock’s entry into India’s mutual fund industry carried echoes of Reliance Jio’s disruption of the telecom market. Expectations of ultra-low fees and aggressive pricing followed naturally. A year later, however, the fund house is drawing a different line in the sand. “We’re not trying to be the cheapest,” said Sid Swaminathan, MD & CEO, JioBlackRock AMC, arguing that value and performance matter more than headline costs.
Instead, the company evaluates pricing based on the returns and alpha a strategy can generate, while using technology and scale to improve efficiency where possible.
“We think about pricing more in terms of the value-for-money concept rather than just the headline that this has to be the cheapest,” Swaminathan said.
SIF focus
JioBlackRock aims to become one of India’s largest fund houses within five years as it expands its product suite and distribution network, betting on emerging investment categories such as Specialised Investment Funds (SIFs) to drive the next phase of growth.
The joint venture between Jio Financial Services and BlackRock has amassed nearly ₹19,000 crore in assets under management (AUM) and attracted 11.5 lakh investors within a year of launching its first funds, according to Swaminathan.
“In five years’ time, we want to be one of the largest players here.”
The asset manager is now preparing to launch its first hybrid long-short SIF on June 29 and will simultaneously enter physical distribution, marking a shift from its initial direct-to-consumer, digital-first strategy.
The company currently operates 14 mutual fund schemes and has seen strong traction from retail investors. Its flagship Flexi Cap Fund has crossed ₹3,000 crore in assets and attracted more than seven lakh investors.
A notable trend for the fund house has been its ability to attract new investors to the category. Swaminathan said 20 per cent of JioBlackRock’s investor base comprises first-time mutual fund investors, while 40 per cent of its retail AUM originates from beyond the top 30 cities.
“We see the potential for this market to be two to three times where it is today over the next five years,” he said, citing India’s favourable demographics, rising participation and growing financialisation of savings.
The AMC is also broadening its offerings beyond traditional mutual funds. It plans to launch exchange-traded funds (ETFs), GIFT City products catering to both inbound and outbound investors, and SIFs, a newly introduced category positioned between mutual funds and portfolio management services.
The company believes products such as hybrid SIFs could emerge as important portfolio-building tools for affluent investors seeking equity-like returns with lower levels of risk.