Jio BlackRock adds 5 new index funds to mutual funds lineup; here’s what investors should know
Jio BlackRock Mutual Fund is ramping up its product offerings, securing SEBI’s nod to launch five new passively managed schemes. This comes shortly after the AMC’s successful debut, where it raised Rs 17,800 crore through three debt mutual funds.
The new lineup includes four equity index funds and one debt index fund, all of which will be offered under a direct plan with a growth option to keep investor costs low. The schemes are:
> Jio BlackRock Nifty 50 Index Fund
> Jio BlackRock Nifty Next 50 Index Fund
> Jio BlackRock Nifty Midcap 150 Index Fund
> Jio BlackRock Nifty Smallcap 250 Index Fund
> Jio BlackRock Nifty 8–13 yr G-Sec Index Fund
Each of these funds will replicate their respective benchmark indices, allocating 95–100% of assets to index constituents and the rest, if any, to debt or money market instruments.
According to Equitymaster, the flagship Nifty 50 Index Fund will mirror India’s top 50 listed companies. The index is currently dominated by financial services (37.4%), IT (11.2%), and oil & gas (10.4%), with HDFC Bank, ICICI Bank, and Reliance Industries holding the highest weights.
The Nifty Next 50 Index Fund will focus on companies ranked 51–100 in terms of market capitalization. It offers exposure to sectors such as FMCG, power, and industrial manufacturing. Prominent constituents include InterGlobe Aviation, Hindustan Aeronautics, and Divi’s Laboratories.
For investors looking to bet on broader mid-sized companies, the Nifty Midcap 150 Index Fund covers firms ranked 101st to 250th by market cap. Sectors like capital goods, healthcare, and finance make up the bulk of this index. Current top holdings include BSE, Max Healthcare, and Suzlon.
The Nifty Smallcap 250 Index Fund targets smaller companies ranked 251st to 500th. This index leans heavily toward capital goods, financial services, and healthcare. Leading constituents are MCX, CDSL, and Laurus Labs.
The only debt scheme in the new batch — the Nifty 8–13 yr G-Sec Index Fund — will track a curated basket of government bonds with 8–13 years of residual maturity. As noted by Equitymaster, the index weights are determined using a 40:60 ratio based on traded value and outstanding issuance, offering a passive play on interest rate movements in medium-duration gilts.
The equity index funds will be managed by Tanvi Kacheria, Anand Shah, and Haresh Mehta. The debt fund will be overseen by Vikrant Mehta, Siddharth Deb, and Arun Ramachandran.
Minimum investment is Rs 500 for both lump sum and SIP routes.
Equitymaster observed that while these passive funds may appeal to cost-conscious investors and index followers, investors should consider their personal risk appetite and long-term financial goals before choosing. “Rather than getting carried away by new launches, align your fund selection with the goals you’re planning to achieve and the time horizon at hand,” it said.
Jio BlackRock has announced its intention to launch more schemes in the coming months, signalling a strong commitment to rapidly expanding its footprint in India’s mutual fund space.