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Jio Blackrock Mutual Fund: Complete Guide, Future Plans & Investment Process
In the world of mutual funds, a new player is making headlines – Jio Blackrock Mutual Fund. After launching its first set of debt mutual funds, Reliance Jio in partnership with BlackRock has taken its first step towards disrupting India’s investment market. But what exactly is Jio Blackrock Mutual Fund? How can retail investors like you start investing? And what’s coming next? Let’s break it all down step-by-step.
What Is Jio Blackrock Mutual Fund?
Jio Blackrock Mutual Fund is a strategic joint venture between Reliance Jio and BlackRock, the world’s largest asset management company. This partnership aims to simplify investment for retail investors and provide low-cost mutual fund options across India.
Recently, the fund house launched its first three debt mutual funds:
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Jio Blackrock Liquid Fund
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Jio Blackrock Overnight Fund
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Jio Blackrock Money Market Fund
These funds raised approximately ₹17,800 crores through their New Fund Offer (NFO), placing the company among India’s top 35 mutual fund houses in terms of Assets Under Management (AUM). This shows a strong initial response from both institutional and retail investors.
Published March 18, 2024.
Why Jio Blackrock Mutual Fund is a Game Changer
1. Massive Reach
Jio already has over 450 million active users. By integrating mutual fund investment options directly into the Jio Financial Services app, the company can easily reach millions of potential investors.
2. Affordable Investment Options
While a ₹1 per day SIP is still not available, Jio Blackrock Mutual Fund is preparing to launch SIPs starting at ₹500 per month (roughly ₹17 per day). This move aims to bring millions of small investors into the mutual fund ecosystem.
3. Focus on Digital-Only Investment
Unlike traditional AMCs that rely heavily on distributor networks, Jio Blackrock Mutual Fund is focusing on digital direct investment via its app. This could significantly reduce distribution costs and make investing more affordable.
4. Personalised Advisory Services
Jio Blackrock Investment Advisors plan to offer personalised investment advice, helping even first-time investors select the right mutual funds.
5. Upcoming Equity Funds
Currently, Jio Blackrock offers only debt funds. However, eight new equity-based mutual funds are in the pipeline, including:
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Large-cap funds
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Mid-cap funds
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Small-cap funds
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Sector-specific funds
These funds are expected to further boost Jio Blackrock Mutual Fund’s position in India’s asset management industry.
How to Invest in Jio Blackrock Mutual Fund?
If you want to invest, here’s a simple process:
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Download Jio Financial Services App from Play Store or App Store.
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Complete your KYC process directly in the app.
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Choose your preferred Jio Blackrock Mutual Fund from available options.
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Select Direct Mode for commission-free investing.
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Enter your investment amount (minimum ₹1,000 in current funds).
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Pay using UPI and confirm your investment.
The app is user-friendly, making mutual fund investment as simple as using any digital payment app.
Why ₹1 SIP Is Not Yet Available?
While many investors were hoping for ₹1 per day SIP, handling and monitoring micro-investments at that scale is challenging due to transaction and compliance costs. However, experts believe SIPs as low as ₹100-₹150 per month could become reality in the near future, promoting financial inclusion across India.
Comparison with US and China Mutual Fund Market
India’s total mutual fund AUM stands at around ₹72 lakh crores (approximately $0.85 trillion). In comparison:
USA’s mutual fund AUM exceeds $30 trillion.
China’s AUM is around $5 trillion.
This shows that India’s mutual fund industry has massive growth potential, possibly expanding 5x to match China and 30x to catch up with the US.
Direct vs Regular Investment Trend
Interestingly, 47% of India’s mutual fund investments are now being done through direct mode, compared to 53% via regular plans involving distributors. The trend towards direct investing is increasing, especially as platforms like Jio Blackrock Mutual Fund promote app-based, self-managed investments.
Jio Blackrock’s Future Disruption
Apart from mutual funds, Jio Blackrock has also secured SEBI’s approval to launch its broking services. Experts predict that Jio could introduce ₹1 brokerage plans, disrupting existing players like Zerodha, Groww, and Upstox.
This could transform how Indians trade in stock markets, combining ultra-low brokerage fees with personalised advisory services.
Conclusion: Should You Invest in Jio Blackrock Mutual Fund?
Jio Blackrock Mutual Fund is poised to democratise mutual fund investing in India. With low-cost funds, simple app-based investments, and personalised advisory services, it offers an excellent starting point for new investors.
While current offerings are limited to debt funds, the upcoming launch of eight equity funds is worth watching.
If you’re a retail investor looking for simple, direct, and affordable investing – Jio Blackrock Mutual Fund is worth considering.
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