How Jio BlackRock raised record Rs 17,800 crore

Jio Financial Services

Jio BlackRock Asset Management, the joint venture between Mukesh Ambani’s Jio Financial Services and global investment giant BlackRock, has raised Rs 17,800 crore across its three cash fund schemes (overnight, liquid and money market) in its first offering since receiving a licence in May.

Jio BlackRock’s three-day maiden offer, which closed on July 2, attracted investments from over 90 institutional investors and 67,400 retail investors, according to people familiar with the development.

The NFO was one of the largest in India’s cash/debt fund segment, and, out of 47 fund houses, it placed Jio BlackRock Asset Management among the top 15 asset management companies by debt assets under management in the country.

“This offering brought together the global investment expertise, risk management discipline, and cutting-edge tools like Aladdin from BlackRock, with the unmatched trust, digital reach, and distribution strength of Jio. Significant groundwork was laid with corporate clients prior to launch - engaging early, validating our proposition, and aligning with their expectations,” one of the people cited above said.

The NFO is nearly six times that of Bajaj, which collected Rs 3,000 crore in total across the same three funds in 2023, making this the largest NFO in the cash fund category.

Retail participation has seen orders of magnitude higher than what is typically seen for cash funds. In comparison, Bajaj had a participation of 1,470 retail folios compared to nearly 77,000 for Jio BlackRock.

With over 90 institutions participating, it is a strong endorsement of the Jio BlackRock value proposition. The company stated that the retail adoption indicates recognition and acceptance of cash funds as alternatives to traditional current account and savings account options.

The numbers show that liquid funds are increasingly being seen as a preferred option for short-term money management, as they offer flexibility and have the potential to deliver better risk-adjusted returns compared to traditional savings or current accounts, the person said.

The person said that the upcoming set of funds from Jio BlackRock will be designed to cater specifically to the retail segment of the market and cater to the vision of delivering institutional-quality investment solutions that are accessible and affordable to every Indian.

The company added that over 50,000 transactions were processed through the Invest button - Jio Finance App, and it was also accessible through My Jio. It also posted more than 68,000 transactions through digital platforms, which is a record high in the cash/debt category.

Post NFO, Jio BlackRock is the 29th largest asset management company by assets under management, and 15th largest in cash and 16th in the debt fund category.

An Account Creation Campaign has been launched to directly engage with investors. The campaign is not just about onboarding but also about building a community of investors through smart, relevant, and easy-to-understand content, the person said, adding that this is in continuation of the company’s goal to convert savers into investors and foster long-term financial inclusion at scale.

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