JioBlackRock Mutual Fund will launch its first active equity product, the JioBlackRock FlexiCap Fund, on September 23.
The fund will operate on the Systematic Active Equity (SAE) platform, using a rules-based, machine-driven approach.
About 95% of the investment process will be technology-driven, tracking 400 signals to minimize biases and key-person risk.
The fund will cap active risk at 3-4%, focusing on downside protection and consistent returns.
A 10-year simulation showed potential 3-4% outperformance over the benchmark, in line with BlackRock’s global results.
JioBlackRock Mutual Fund on Thursday said it will launch its first active equity product, JioBlackRock FlexiCap Fund, on the Systematic Active Equity platform on September 23, but refrained from setting any collection target for the new fund during the initial offer period.
“This is our first active equity fund. Three or four other active equity funds are in the pipeline, which may see the light of day this fiscal. Other products, including ETFs, will follow in due course,” JioBlackRock AMC chief investment officer Rishi Kohli said.
The fund, built on BlackRock’s globally proven SAE platform, follows a rules-based and predominantly machine-driven process tracking 400 signals. About 95% of the investment process will be technology-driven, aiming to eliminate key-person risk, reduce cognitive biases, and ensure disciplined fund management.
The SAE Flexi-Cap Fund will maintain a controlled active risk of no more than 3-4%, lower than industry averages, with a focus on downside risk protection and consistent returns for investors.
Kohli said a 10-year simulation indicated the model could deliver 3-4% outperformance over the benchmark index, similar to results achieved in other BlackRock country funds.
“In an uncertain market environment, where equity markets have been tough, we believe it’s a good time to launch a product that manages risk on the lower side compared to other active funds and still aims for attractive alpha in the long run,” Kohli said.
JioBlackRock, the partnership between Jio Financials and the world's largest asset managers BlackRock, received its license in May and currently manages around ₹18,000 crore in assets across eight cash and index funds. The fund house will continue to focus on digital distribution in the near term.
The official, however, did not comment on AUM targets or a break-even timeline.
