Mumbai: After receiving SEBI’s approval, Mukesh Ambani-led Jio Financial Services Ltd (JFSL) has announced its intent to commence mutual fund operations in India with a 50:50 JV with BlackRock Inc, the world’s largest asset manager. This is BlackRock’s second stint in India’s Mutual Fund industry, after it sold its 40% stake in DSP BlackRock to its JV partner DSP Group.
With this collaboration, Mukesh Ambani aims to expand its portfolio of services through the Jio brand. Jio’s vast reach as India’s largest mobile phone operator will be key here, as its digital ecosystem can help it breach the dominance of long-term players like SBI, HDFC, ICICI and Kotak Mahindra Bank in India’s Rs.70 lakh crore Mutual Fund market that has an annual growth rate of 18% in the past 10 years.
Jio BlackRock will eventually compete with 47 other Mutual Fund houses where it must start to carve a slice of the 29% market share of newer Asset Management Companies.
BlackRock is renowned for its global expertise with its proprietary investment management Alladin platform.
As per a press release by Reliance Industries, Jio BlackRock has appointed Sid Swaminathan as the MD and CEO of this new AMC. He brings with her 2 decades of management experience and is poised to lead the team for digital-first investment offerings, mostly targeting small-town investors.
Isha Ambani, a Non-Executive Director at JFSL, said:
“India’s rapid growth is driven by a new generation with bold aspirations. Our partnership with BlackRock is a powerful combination of global investment expertise and Jio’s digital-first innovation. Together, we are committed to making investing simple, accessible, and inclusive for every Indian. I am confident that JioBlackRock Asset Management will play a transformative role in shaping the future of financial empowerment in India.”
Rachel Lord, Head of International at BlackRock, added:
“The opportunity in asset management in India today is tremendously exciting. JioBlackRock’s digital-first customer proposition, delivering institutional quality products at a lower cost directly to investors, will enable more people in India to enjoy the many benefits of access to the capital markets. Together with our partner JFSL, we look forward to contributing to the country’s continued evolution from a nation of savers to a nation of investors.”
