JioBlackRock Closes NFO For New Funds With $2.1 Bn Investment

Over a month after receiving SEBI’s nod to operate as an asset management company (AMC), JioBlackRock has closed its maiden new fund offer (NFO) with a total investment of INR 17,800 Cr ($2.1 Bn). 

The funds have been raised across three cash and debt mutual fund schemes — JioBlackRock Overnight Fund, JioBlackRock Liquid Fund and JioBlackRock Money Market Fund. 

The NFO for the three funds was launched on June 30 and closed on July 2. JioBlackRock, which is a 50:50 joint venture between Reliance-backed Jio Financial Services (JFS) and global investor BlackRock, claims that the NFO attracted investments from over 90 institutional investors. 

With the closing of the funds, JFS has taken its investment offering live on its platform. Here’s a quick look at the three funds that are live for investors on the platform:

• JioBlackRock Overnight Fund: This scheme lets investors bet on overnight securities, a  low-interest rate risk and low-credit investment option. Being an open-ended scheme, it will be open for purchase/redemption on all business days at NAV prices.
• JioBlackRock Money Market Fund: A low-interest rate risk and moderate credit risk investment that allows investors to generate regular income through investment in a portfolio consisting of money market instruments with residual maturity up to 1 year.
• JioBlackRock Liquid Fund: The fund allows users to generate regular income through investments in a portfolio consisting of money market and debt instruments with residual maturity up to 91 days.

Besides taking the investment opportunities live, JFS announced a new initiative to simplify onboarding and create investment-ready accounts within minutes through the JioFinance app. 

“The overwhelming response to our first NFO from institutional and retail investors is a powerful endorsement of JioBlackRock Asset Management’s innovative investment philosophy, risk management capabilities and digital first approach,” JioBlackRock Asset Management’s CEO and MD Sid Swaminathan said.

JFS’ entry into the AMC business is just a part of the listed fintech’s bid to build its super app. Just days ago, the Jio-BlackRock JV, Jio BlackRock Broking, received a stockbroking and clearing licence from the SEBI. 

Besides AMC and stock broking, JFS has added insurance services, UPI and loans to its app. To round up its financial services stack, the company recently completed the acquisition of its banking arm, Jio Payments Bank, from State Bank of India. Now, users can set up a new Jio Payments account via the app within a few minutes.