Jio BlackRock Mutual Fund has opened subscription for its first active equity scheme, the JioBlackRock Flexi Cap Fund, with the new fund offer (NFO) closing on October 7. The scheme comes after a set of passive launches earlier in the year. With this fund, the asset manager enters the well-established flexi-cap category which already has 40+ options and manages nearly ₹5 lakh crore in assets. JioBlackRock fund’s distinct proposition is that it will be managed using a rules-based, technology-led approach rather than a purely discretionary style.
Decoding model
At the core of the design is BlackRock’s Systematic Active Equity (SAE) framework. It combines human expertise with data-driven models and draws from a wide universe of about 750 Indian stocks, narrowed down from more than 1,000 using liquidity, turnover, and execution feasibility filters.
Each stock is scored on the basis of signals (over 400 of them specific to India) covering fundamentals, market behaviour, and alternative data. The models appear to be refreshed weekly. A benchmark-aware risk process is meant to keep deviations controlled vis-a-vis Nifty 500 Total Return Index whose current top holdings include HDFC Bank, ICICI Bank, RIL, Infosys, Bharti Airtel, L&T, ITC, TCS and SBI.
The fund’s aim will be to deliver consistent long-term alpha while managing volatility. For perspective, flexi-cap funds as a category have a three-year monthly standard deviation of 3.7 per cent and a Sortino ratio of 0.25, according to ACEMF.
The technology backbone is BlackRock’s Aladdin platform, which is widely used by global institutions for portfolio risk analytics, transaction cost modelling, and compliance. In principle, this could provide the fund managers with an advantage in managing costs and risks at scale. Another selling point is that a systematic approach can reduce behavioural biases that affect human decision-making, such as overconfidence or recency.
Pros & cons
On the investor-facing side, JioBlackRock Flexi Cap Fund has several interesting features. It has no exit load, unlike many equity funds that impose a fee for exits within a year (0.10-1 per cent). The indicative total expense ratio for the direct plan is 0.5 per cent, placing it in the 1st quartile (lowest cost group) basis direct plan offerings. Fund managers Tanvi Kacheria and Sahil Chaudhary bring experience in quantitative and index portfolio management.
India’s equity market has expanded significantly in recent years, with higher trading volumes, broader sector representation, and more IPOs adding to the listed universe. A larger opportunity set makes systematic strategies easier to apply.
That said, the gaps are clear. As an NFO, there is no live performance record. The back-tested numbers shown in the presentation are hypothetical and cannot substitute for real-world data. Investors should also be aware that regular rebalancing, while intended to capture opportunities quickly, could increase churn and costs if not managed tightly.
Flexi-cap funds are designed to provide long-term growth by giving managers the freedom to invest across large-, mid-, and small-cap stocks without restriction. They can suit investors who want equity exposure but prefer to leave the market-cap allocation decisions to professionals.
The flexi-cap space already has proven schemes with long track records. On average, existing actively managed funds in the category have delivered about 16.9 per cent CAGR over three years and 20.9 per cent over five years, broadly in line with the Nifty 500 TRI’s returns of 16.9 per cent and 20.8 per cent over the same periods. Fund portfolios are typically tilted towards large-caps (57 per cent), with decent allocations to mid-caps (20 per cent) and small-caps (17 per cent). Investors will need to weigh whether an untested quant-driven offering is worth adding alongside established names.
Our Take
Overall, JioBlackRock Flexi Cap Fund represents an ambitious attempt to bring systematic active investing into India’s retail mutual fund space. Its differentiators are breadth of stock coverage, use of alternative data and AI, governance filters, and lower cost.
The risks are the lack of a live record and dependence on models that may behave differently in stressed conditions. Also, small bets across a large number of stocks to beat Nifty 500 may result in a very diffused portfolio.
For investors seeking core flexi-cap exposure, established funds remain more reliable choices. JioBlackRock Flexi Cap may be tracked as an option for satellite allocation once it builds a live record.
bl.portfolio Star Track Mutual Fund Ratings’ current preferred choices include HDFC Flexi Cap Fund, Parag Parikh Flexi Cap Fund, and Franklin India Flexi Cap Fund.
Published on October 4, 2025
