SEBI Approves JioBlackRock’s Launch of Four New Active Funds

SEBI (Securities & Exchange Board of India) has approved JioBlackRock Mutual Fund to launch its four new active funds, named JioBlackRock Sector Rotation Fund, JioBlackRock Low Duration Fund, JioBlackRock Arbitrage Fund and JioBlackRock Short Duration Fund. Among these four funds, two are debt funds, one is a sectoral fund and one is an arbitrage fund.

The minimum investment amount in these four funds will be Rs 500 for a lump sum investment and for SIP, the minimum investment amount will be Rs 500 and multiples of Re 1 thereafter. 

Now, let us explore these four active funds one by one:

JioBlackRock Sector Rotation Fund

It will be an open-ended equity mutual fund scheme that follows the sector rotation. The primary investment objective of the mutual fund scheme is to generate long-term capital appreciation by investing in equities and equity-related instruments following a sector rotation theme.

The performance and returns generated by the JioBlackRock Sector Rotation Fund will be compared to the Nifty 500 TRI Index (its benchmark) and Tanvi Kacheria and Sahil Chaudhary will manage it. This sectoral fund will allocate 80-100% of its assets in equity and equity-related instruments based on the sector rotation strategy. It will also allocate 0-20% of its total assets in other equity and related instruments and 0-20% in debt and money market instruments.

This sectoral mutual fund will be highly suitable for investors who want long-term capital appreciation and want investment in equity and equity-related instruments following sector rotation themes.

Must Read: Top 10 Mutual Funds for SIP in 2025: Best Picks to Grow Wealth

JioBlackRock Low Duration Fund

JioBlackRock Low Duration Fund will be a flexible, open-ended investment option focused on duration debt scheme investing in instruments. The fund will invest in financial instruments, aiming for a Macaulay duration of the portfolio between 6 months to 12 months. This means it carries a higher interest rate risk but a moderate credit risk.

The investment goal of this scheme is to earn income by investing in debt and money market instruments, with the same Macaulay duration between 6 to 12 months of the portfolio. The performance and returns of the fund are benchmarked against NIFTY Low Duration Debt Index A-I (benchmark). It will be managed by Arun Ramachandran, Vikrant Mehta and Siddharth Deb.

The fund can allocate 0-100% in debt and money market instruments, making it suitable for investors who are looking for income over a short-term investment horizon through investments in debt and money market instruments, all while maintaining a Macaulay duration of the portfolio between 6 months to 12 months.

JioBlackRock Arbitrage Fund

The JioBlackRock Arbitrage Fund is an open-ended investment scheme that focuses on arbitrage opportunities. The primary investment objective of the mutual fund is to generate income & capital appreciation for you by mainly investing in arbitrage opportunities in the cash and derivatives parts of the equity market. It will also invest some of its funds in debt and money market instruments for a balance.

The performance and returns of this arbitrage fund will be benchmarked against Nifty 50 Arbitrage (TRI) and will be managed by Anand Shah, Haresh Mehta, Siddharth Deb and Arun Ramachandran.

The fund will allocate 65-100% in equity and equity-related instruments, including equity derivatives and 0-35% in debt & money market instruments, including the margin money used in derivative transactions. This fund is suitable for investors who are looking for income in the short term and want to focus their investments on arbitrage opportunities in the cash and derivative part of the equity market. 

JioBlackRock Short Duration Fund

JioBlackRock Short Duration Fund is an open-ended short-term debt scheme that invests in financial instruments. The portfolio will have a Macaulay duration of between 1 year and 3 years. This means it carries a higher interest rate risk and moderate credit risk.

The primary objective of this mutual fund scheme is to generate income by investing in money market and debt instruments such that the Macaulay duration is between 1 year to 3 years of the portfolio. The fund's performance and returns will be compared to the NIFTY Short Duration Debt Index A-II and will be managed by Arun Ramachandran, Vikrant Mehta and Siddharth Deb. 

This short-duration fund can invest anywhere from 0% to 100% in debt & money market instruments. It is suitable for investors who are looking for income over a short-term investment horizon and who want to invest in money market and debt instruments with a Macaulay duration of the portfolio between 1 to 3 years.

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