JioBlackRock Mutual Fund has introduced the JioBlackRock Flexi Cap Fund, touted as India’s inaugural active equity fund utilising BlackRock’s exclusive Systematic Active Equity (SAE) method.
The New Fund Offer (NFO) is set to commence on September 23 and conclude on October 7.
The JioBlackRock Flexi Cap Fund is a flexible open-ended equity scheme that invests in large cap, mid cap, and small cap stocks. The fund’s performance will be measured against the Nifty 500 Index (TRI) and will be overseen by Tanvi Kacheria and Sahil Chaudhary.
BlackRock’s Systematic Active Equity (SAE) system combines human and machine, utilising Big Data, algorithms and identifying signals to select stocks. This fund employs a flexi cap framework, granting investors exposure to a diverse range of large, mid, and small-cap companies. The standout feature of this fund is the incorporation of SAE, a tech-enabled investment approach that merges human expertise with data-driven insights. BlackRock characterizes SAE as a methodology where signal research scores are produced through its specialised model, integrating traditional and non-traditional data. Fund managers then leverage these scores in conjunction with their own judgment to craft portfolios.
In a post on X, JioBlackRock Mutual Fund wrote: “Where AI meets human expertise, and traditional plus alternate data come together to uncover smarter investment opportunities.”
The fund house emphasised that this will not be “just another Flexi Cap Fund,” but one positioned to offer an agile and scalable approach to equity investing in India.
Based on the Scheme Information Document (SID) of the flexi cap fund, this fund is ideal for investors looking for long-term capital appreciation through equity and equity-related instruments of companies across market capitalization.
The scheme exclusively provides direct plans with growth options only, and there is no exit load. The minimum application amount for lump sum investments or switching into the scheme is Rs 500, with further investments allowed in any increment. For Systematic Investment Plans (SIP), the minimum application amount is Rs 500, with subsequent multiples of Re 1 and a minimum commitment of six installments.
The flexi cap fund will have a 65-100% allocation in equity and equity-related instruments of large cap, mid cap, and small cap companies, 0-35% in debt and money market instruments, and 0-10% in units of REITS and InvITs.
The scheme will employ an active investment strategy that utilises a systematic approach to stock selection and portfolio construction. This approach enables the fund managers to proactively respond to changes in market conditions and identify emerging opportunities.
The investable universe of the scheme will be determined by the fund managers, taking into consideration inputs from the investment team. This will help limit investments in stocks of issuers with unfavorable track records related to governance, debt servicing, regulatory compliance, market perception, and other relevant parameters.
The systematic approach will involve leveraging inputs from the fund managers and signal research scores provided by BlackRock Inc.
JioBlackRock Asset Management is a 50:50 joint venture between Jio Financial Services Limited (JFSL) and global investment management firm BlackRock. The partnership aims to combine BlackRock’s global investment experience with JFSL’s local reach and digital infrastructure to provide accessible, data-driven investment solutions to Indian investors.