JioBlackRock MF to launch first active equity scheme JioBlackRock FlexiCap Fund, hints at more in pipeline: Report

JioBlackRock Mutual Fund, a new entrant in the mutual fund industry, will launch the JioBlackRock Flexi Cap Fund NFO, its first active equity fund, on September 23 and will close on October 7. The fund will reopen for continuous sale and repurchase within five business days of allotment date.

“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 told PTI.

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JioBlackRock Flexi Cap Fund is an open-ended dynamic equity scheme investing across large cap, mid cap, small cap stocks. The fund will be benchmarked against Nifty 500 Index (TRI) and will be managed by Tanvi Kacheria and Sahil Chaudhary.

The fund house posted on the social media platform X about the launch of its flexi cap fund. It said that the fund house is introducing the JioBlackRock Flexi Cap Fund which is India’s first active equity fund powered by Systematic Active Equity (SAE). Systematic Active Equity is BlackRock’s proprietary investment approach that processes the signals into actionable investment opportunities where AI meets human expertise, and traditional + alternate data come together to uncover smarter investment opportunities.

The fund house further added that this isn’t just another Flexi Cap Fund but it is a new way to invest — intelligent, agile, and built for scale.

According to the Scheme Information Document (SID) of the flexi cap fund, the fund is suitable for investors who are seeking long-term capital appreciation, and want investment in equity and equity related instruments of companies across market capitalization.

The scheme will offer only direct plan with only growth option. The exit load is nil. The minimum application amount for lumpsum, switch-in to the scheme investment is Rs 500 and any amount thereafter. For the SIP, the minimum application amount is Rs 500 and in multiples of Re 1 thereafter with minimum six installments.

The flexi cap fund will allocate 65-100% 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 shall follow an active investment strategy which adopts a systematic approach to stock selection and portfolio construction. The approach allows the fund managers to respond proactively to changing market conditions and emerging opportunities.

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The investible universe of the scheme is defined by the fund managers based on inputs from the investment team to limit investments into stocks of issuers based on their track record pertaining to governance, debt servicing, regulatory compliance or market perceptions and such other parameters.

The systematic approach involves utilizing inputs from the fund managers and signal research scores shared by BlackRock Inc. Such signal research scores are derived using big data (which includes traditional data and alternative data), and leverages machine learning, a form of artificial intelligence and advanced data analytics, which are constantly being improved. Signals are selected based on their economic rationale and demonstrated statistical relevance.

Kohli also told PTI that a 10-year simulation indicated the model could deliver 3-4 per cent outperformance over the benchmark index, similar to results achieved in other BlackRock country funds.