JioBlackRock brings Systematic Active Equities to India with its first equity fund launch

the fund will draw from a universe of about 750 stocks, far beyond the typical coverage of traditional funds.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Asset management company JioBlackRock has forayed into active equity investing with the launch of the JioBlackRock Flexi Cap Fund, introducing for the first time BlackRock’s systematic active equities (SAE) strategy to investors in India.

Unlike traditional strategies, the fund will be run using a fully rules-based, technology-driven process that combines human expertise with quantitative models, to offer consistent long-term alpha.

Speaking at a media event during the NFO launch, Rishi Kohli, Chief Investment Officer – Equity, JioBlackRock said on Septemeber 23 that the SAE’s disciplined framework is built on three pillars - data, technology, and risk control.

“At a very simple level, any rules-based, fully process-driven, disciplined approach is what we call systematic. It is technology-driven, uses both traditional and alternative data, and combines human judgement with machine learning to build more consistent alpha over the long run,” Rishi Kohli said.

JioBlackRock's CIO explained that the Flexi Cap fund will draw from a universe of about 750 stocks, far wider than the typical coverage of traditional funds. The models will identify signals across fundamentals, market behaviour and alternative data sets before constructing a diversified and benchmark-aware portfolio. The portfolio will be rebalanced on a weekly basis, while costs and risks will be actively managed using BlackRock’s global risk and transaction cost models.

“The objective is to deliver attractive long-term alpha without large downside deviations, so investors stay invested through cycles,” Kohli added.

Raffaele Savi, Senior Managing Director and Global Head of BlackRock Systematic said the launch coincides with the group’s 40th anniversary. “Our belief is that investing is neither purely art nor purely science — it’s a little bit of both,” the Head of BlackRock Systematic said.

Savi highlighted that the rise of alternative data sets and AI has transformed systematic investing. “Fifteen years ago, the information set was limited to financial reports, prices, and research. Today we use everything from satellite images to credit card transactions, app downloads, and online reviews. Models now read tens of thousands of articles and research reports every week to find patterns. The world is different, and there’s no turning back,” Raffaele Savi said.

At its core, SAE aims to turn information into insights and insights into portfolios using technology not as a 'crystal ball' but to make investing safer and more consistent, Savi added. “Cars aren’t faster than 20 years ago, but they’re safer. Airplanes aren’t faster, but they’re safer. Similarly, these tools help us build portfolios that achieve client goals more consistently across cycles,” Savi said.

Sid Swaminathan, the Chief Executive Officer of JioBlackRock Asset Management said the fund is a key milestone in the AMC’s journey. “With BlackRock’s global investment expertise and Jio’s digital reach, our goal is to provide accessible, affordable and differentiated investment solutions for the entire spectrum of investors in India - from institutions to retail savers,” he said.

JioBlackRock has so far launched three cash management funds and five index funds, described as portfolio building blocks. The Flexi Cap Fund is its first active equity offering, with more active and passive strategies - including ETFs - planned in the coming months. Swaminathan added that in the long term, they were looking to expand into wealth management, brokerages and even SIFs.

JioBlackRock AMC is a 50:50 joint venture between Jio Financial Services and BlackRock.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.