Key facts
- Jio BlackRock Asset Management aims to launch its first ETFs in India by August.
- The joint venture has built a base of approximately 180 billion rupees ($1.9 billion) in assets under management.
- Initial ETF offerings will focus on equity strategies.
- The company also intends to introduce products in GIFT City within the next couple of months.
- Jio BlackRock will utilize a distributor-led model for complex products.
Jio BlackRock Asset Management, a joint venture between Jio Financial Services and BlackRock, is preparing to launch its first exchange-traded funds (ETFs) in India by August. The company has already gathered approximately 180 billion rupees ($1.9 billion) in assets under management in cash, debt-index, and active equity funds since its inception about a year ago. The initial ETF offerings will focus on equity strategies, aiming to replicate BlackRock's global success in passive investing within the Indian market, where ETFs are still in their early stages.
Passive mutual fund assets in India currently represent about 18.5% of the industry's total assets under management, a figure significantly lower than the approximately 45.3% share held by equity index funds and ETFs in the U.S. Sid Swaminathan, CEO of Jio BlackRock, believes that tighter bid-offer spreads and more innovative strategies could enhance liquidity and encourage greater retail participation in Indian ETFs. The company also plans to introduce products in Gujarat International Finance Tec-City (GIFT City), India's financial hub, within the next few months. For more complex offerings, including special investment funds and GIFT City products, Jio BlackRock will adopt a distributor-led model instead of a digital-first approach, acknowledging the ongoing importance of financial advisers in selling higher-value products.