Jio BlackRock Asset Management Pvt. Ltd, the Reliance Industries and BlackRock-backed asset manager, has begun reaching out to select distributors to understand how the distribution model could work, according to reports from Mint. This represents a significant shift from the company's initial strategy of selling mutual funds directly to consumers through its own app and fintech partnerships. The AMC had initially planned to monetize its own app and fintechs to market its mutual fund products, bypassing the traditional distributor-led model entirely.
The strategic pivot comes after a muted debut of its first equity scheme, the Jio BlackRock Flexicap Fund, which was launched in October 2025. As reported by Mint, the fund's assets under management (AUM) stood at ₹2,613 crore at the end of January, compared with ₹2,808 crore of the Abakkus Flexicap Fund, launched in December 2025. According to Srikanth Meenakshi, co-founder of mutual fund research platform Primeinvestor, "For a name like Jio BlackRock, it should have seen a higher uptick in its flexicap fund. Trying to go purely direct in India, especially for a new AMC, might be difficult."
In a direct model, investors do not pay a commission to mutual fund distributors for advice, while in a distributor model, investors pay the distributor for advice, which is cut from their expense ratio. As reported by Mint, since Jio BlackRock announced it would offer low-expense ratios for its funds, it is also looking at distributors willing to accept lower commission payouts. Meenakshi noted that "even with distributors, expense ratios can stay low—it depends on commissions, but models already exist where the regular-direct gap is very low."
Distribution remains one of the key drivers of mutual fund asset growth, with distributors accounting for 55.2% of overall mutual fund AUM as of December 2025, according to the Association of Mutual Funds of India (Amfi). Within equity schemes, this number is even higher, with distributors buying 72.4% of investments in equity-oriented schemes in December 2025. According to Manish Kothari, co-founder at Sebi-registered mutual fund distributor ZFunds, "Younger investors prefer tech-led platforms, while wealthier investors need advice. While small amounts can be invested directly, larger sums typically require guidance."
The move follows a pattern seen with other international asset managers entering India, including Fidelity Investments, which initially tied up with only a handful of distributors while promising to eventually go directly to customers. As reported by Mint, Jio BlackRock AMC stated that "Our focus has always been on democratizing investing by expanding market participation. As we scale, we will continue to evaluate opportunities that align with our product value proposition, with the overarching objective of making our offering simple and accessible to more investors in India." The company's CEO Sid Swaminathan had previously noted that while the focus is on direct digital approaches, they do not rule out physical distribution at some point in the future.
