Jio BlackRock Asset Management is gearing up to shake up India’s ₹72.2 trillion ($844 billion) mutual fund industry with a bold, low-cost, and digital-focused strategy, according to three people familiar with the matter.
What’s the plan?
The joint venture between Jio Financial Services, part of Mukesh Ambani’s Reliance group, and global investment giant BlackRock, plans to launch nearly a dozen equity and debt mutual fund schemes by the end of 2025.
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It has already launched three debt funds last month, raising over $2.1 billion from 90 institutional investors and 67,000 retail investors.
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The firm has applied to the market regulator for approvals to launch eight more funds, sources said.
What’s different?
Jio BlackRock aims to cut costs drastically and target small-ticket retail investors, challenging the traditional model of India’s fund industry.
Here’s how:
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No distributors: Unlike most asset managers, Jio BlackRock plans to bypass traditional mutual fund distributors and operate through a direct-only model.
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Lower costs: Without distributor commissions and by leveraging technology, its fund expenses are expected to be below industry average.
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Small investments: Investors will be able to start with as little as ₹500 (~$6), making it highly accessible.
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Technology edge: Jio’s vast telecom user base and BlackRock’s global investment platform, Aladdin, will help deliver products and services efficiently at scale.
Why it matters
India’s mutual fund industry has grown rapidly in recent years but remains under-penetrated among retail investors.
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Jio BlackRock’s strategy could democratize investing by making it cheaper and easier to access, potentially expanding the investor base.
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The move challenges incumbents who depend heavily on distributor networks and charge higher fees.
Industry impact
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Investors: Retail investors may benefit from lower-cost products and easy digital access.
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Competition: Existing fund houses could face pressure to cut costs and rethink distribution.
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Distributors: With Jio BlackRock bypassing them, traditional intermediaries could lose business if more investors opt for direct plans.
What’s next?
While the company has declined to comment on the details of its pricing or upcoming launches, sources say the full range of products is expected to roll out by the end of the year, provided regulatory approvals come through.
With Reliance’s reach and BlackRock’s expertise, Jio BlackRock could transform the landscape of mutual funds in India, much like Jio disrupted the telecom industry earlier.
