Jio BlackRock Flexi Cap Fund to Use BlackRock's Aladdin Platform

Jio BlackRock Asset Management Company (AMC) has received SEBI approval to launch the JioBlackRock Flexi Cap Fund, its first actively managed equity scheme. This follows the company’s earlier launches of debt and passive index funds. The new scheme will invest in large-cap, mid-cap, and small-cap stocks within the Nifty 500 universe.

Position in the Flexi-Cap Category

Once launched, it will become the 41st scheme in the flexi-cap segment, which includes major funds such as Parag Parikh Flexi Cap Fund and HDFC Flexi Cap Fund. These 2 currently manage a combined daily AUM of over ₹1.9 lakh crore. Flexi-cap funds have the flexibility to shift allocations between market capitalisations based on prevailing market conditions.

Technology in Portfolio Construction

The JioBlackRock Flexi Cap Fund will use BlackRock’s Aladdin platform for portfolio building. Aladdin is a risk and portfolio management system that will work alongside inputs from the fund managers and signal research scores from BlackRock Inc. These scores are derived from big data, combining traditional and alternative data, and use machine learning for analysis. However, the end decision will be made by Fund Managers.

Asset Allocation and Features

As per the draft filed with SEBI, the fund will allocate:

• Equity and equity-related instruments: 65% to 100%
• Debt and money market instruments: up to 35%
• Units of REITs and InvITs: up to 10%

The scheme will not invest in overseas securities. It will offer a direct plan with a growth option during the New Fund Offer (NFO). The minimum investment during NFO will be ₹500, with the same amount as the minimum for SIPs. No exit load will be charged. The benchmark will be the Nifty 500 TRI. The scheme will be managed by Tanvi Kacheria and Sahil Chaudhary. 

Read more: Jio BlackRock Sees Massive Untapped Potential in Indian Mutual Funds!

Conclusion

With regulatory clearance in place, JioBlackRock is set to introduce its first active equity product, combining a flexible mandate with technology-led portfolio processes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.