Jio BlackRock Asset Management plans to launch its first (ETFs) in India by August, seeking to replicate BlackRock’s global success in passive investing in a market where ETFs remain at a relatively early stage of development.
The asset manager, a joint venture between Jio Financial Services and BlackRock, has amassed about ₹18,000 crore ($1.9 billion) in assets under management (AUM) in roughly a year since its launch, building its asset base through liquid funds, debt-index funds and active equity schemes.
The company plans to begin with equity-focused ETF offerings, Sid Swaminathan, managing director and chief executive officer of Jio BlackRock Asset Management, told Reuters.
The launch would mark the fund house’s entry into a segment that has emerged as a major growth engine for BlackRock globally but remains a relatively small part of India’s mutual fund industry.
Why is Jio BlackRock betting on passive investing?
The ETF push reflects BlackRock’s global strength in passive investing.
The world’s largest asset manager oversees about $5.1 trillion in ETF assets globally, with ETFs accounting for more than one-third of its overall assets under management. Its iShares platform is among the world’s largest ETF franchises.
Swaminathan told Reuters that the company sees significant room for growth in India’s passive investing market, which remains smaller than those in developed economies.
The move is also the latest step in Jio BlackRock’s expansion since entering India’s mutual fund industry. The fund house launched with liquid funds and debt-oriented products before expanding into active equity schemes and is now preparing to enter the ETF segment.
How far behind global markets is India’s ETF industry?
India’s passive investing industry has grown rapidly in recent years but remains significantly smaller than those in developed markets.
According to AMFI data, and ETFs together managed average assets of about ₹14.8 lakh crore in May, accounting for nearly 18% of the mutual fund industry’s average assets under management.
The category includes average assets of ₹3.33 lakh crore in index funds, ₹1.84 lakh crore in gold ETFs and ₹9.64 lakh crore in other ETFs.
By comparison, index funds and ETFs account for roughly 45% of long-term fund assets in the United States, according to data cited by Reuters.
The Indian ETF market has historically been driven by institutional investors such as pension funds and insurance companies. However, retail participation has increased in recent years as investors have gained greater access to low-cost investment products through digital platforms.
What comes next?
Beyond ETFs, Jio BlackRock plans to launch investment products through GIFT City, India’s international financial services hub, in the coming months.
The company also expects to use distributors for certain products, including special investment funds and offerings, according to Swaminathan.
The planned launches would broaden Jio BlackRock’s product suite less than a year after it entered India’s mutual fund industry. The fund house currently offers liquid funds, debt-index funds and active equity schemes, with ETFs set to become its latest offering.