First active fund from JioBlackRock MF: FlexiCap fund NFO to come this month

Kolkata: After a clutch of passive funds, JioBlackRock is going to unveil the NFO of its first actively managed fund in India on September 23. The AMC management announced that the NFO window of the JioBlackRock FlexiCap Fund will be open till October 7. “This is our first active equity fund. Three or four other active equity funds are in the pipeline, which may see the light of day this fiscal. Other products, including ETFs, will follow in due course,” chief investment officer Rishi Kohli of the fund house told PTI.

According to reports, the fund is built on the proprietary Systematic Active Equity platform of BlackRock, which is supposed to be a data-driven investment framework combining AI and human skills to spot investment opportunities to generate alpha returns. Kohli said the process tracks as many as 400 signals, adding that almost 95% of the investment will be driven by technology. Thereby it would try to reduce cognitive bias.

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The CIO of the AMC told the media that armed with the machine and human skills, it is possible for the model to generate 3-4 per cent outperformance over the benchmark index. “In an uncertain market environment, where equity markets have been tough, we believe it’s a good time to launch a product that manages risk on the lower side compared to other active funds and still aims for attractive alpha in the long run,” Kohli said.

A crucial point to remember is that the one can invest in the mutual fund schemes of this AMC by the direct digital channels only. So far it has eschewed he traditional distribution models and will continue to do so. JioBlackRock is a JV between Jio Financials and US giant AMC BlackRock. Right now the AMC has eight index and cash funds and the total AUM stands at Rs 18,000 crore.

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The flexi cap fund is appropriate for investors who are looking for long-term capital appreciation through equity and equity related instruments in different market caps through a single investment. According to the product literature, this fund will invest 65-100% in equity and equity-related instruments across large cap, mid cap and small cap companies. The investment in debt will be 0-35% and in REITS and InvITs between 0 and 10%.

Investors of this fund won't have to bear any exit load. The mode will be only growth option through the direct channel. One can apply with a minimum investment of Rs 500 and any amount thereafter. If one follows the SIP mode, the smallest amount is Rs 500 and one has to invest at least six instalments.