JioBlackRock Flexi Cap Fund Will Have Up to 50% Exposure in Derivatives

JioBlackRock Flexi Cap Fund is an open-ended dynamic equity scheme investing across stocks of all market capitalisation and equity and debt derivatives as per the scheme information deed. However, the scheme’s opening date is yet to be announced.

JioBlackRock Flexi Cap Fund aims to generate long-term capital appreciation and follows an active investment approach with a systematic process for stock selection and portfolio construction. This enables Fund Managers to proactively respond to changing market conditions and emerging opportunities.

JioBlackRock Flexi Cap to Invest in Derivatives

The scheme may invest in derivatives, which are used to manage risk, adjust the investment mix, or for other approved reasons. These investments will always align with the overall goal and strategy of the scheme. Investing in derivatives can help a fund manager earn higher returns, but it also increases the chance of larger losses than gains.

Asset Allocation Pattern of the Scheme (Under Normal Circumstances)

Additionally, investment in equity and debt derivatives may be made up to 50% of the Scheme’s net assets, for both hedging and non-hedging purposes.

JioBlackRock Flexi Cap Fund: Investment Strategies

The fund will invest its money based on its goals, and it can put money into a variety of financial instruments, including:

• Shares and related investments, such as convertible debentures, equity warrants, preference shares, and equity derivatives.
• Government of India securities, like treasury bills, zero-coupon bonds, and other types of government bonds, including transactions like repos and reverse repos, as allowed by the RBI.
• Government-guaranteed securities, issued by the Central or State Governments, such as bonds and treasury bills.

Also Read: Jio BlackRock Flexi Cap Fund Allocates 10% of Assets to REITs

Conclusion

JioBlackRock Flexi Cap Fund offers a dynamic and flexible investment approach by allocating across various market capitalisations and asset classes, including derivatives. With the option to invest up to 50% in equity and debt derivatives, the fund seeks to enhance returns and manage risk effectively.

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.