JioBlackRock Mutual Fund has filed draft papers with the Securities and Exchange Board of India (SEBI) for its Corporate Bond Fund, marking a significant expansion of the company's product portfolio. According to the latest filings, the investment objective of the scheme is to generate income through investments predominantly in AA+ and above rated corporate debt. The benchmark for the scheme is the NIFTY Corporate Bond Index A-II, providing a clear framework for performance measurement and risk management. The New Fund Offer (NFO) date for this new fund has not yet been announced by the company.
JioBlackRock Asset Management is targeting annual returns of 9-11% from its newly launched Prism Hybrid Long Short Fund, a specialised investment fund aimed at delivering differentiated returns across market cycles. According to MD and CEO Sid Swaminathan, the fund seeks to limit losses during periods of market volatility through a combination of equities and derivatives. The strategy is specifically designed for investors who have built wealth through equities and are now looking for investments that behave differently from conventional equity funds. As Swaminathan explained, "The goal here is to try and generate that consistent nine to 11% as the range" and "These investors want strategies that can generate returns whether markets are rising, falling or moving sideways." The fund should not be confused with an equity fund, with Swaminathan emphasizing that "If the equity markets are rallying, this is not going to keep track with that for sure."
The fund's approach combines BlackRock's global investment capabilities with its Aladdin risk management platform and a specialised derivatives team in India. As reported by CNBC TV18, the strategy has been back-tested over five to seven years and has also been tracked through a paper portfolio during recent market volatility. During a period when Indian markets fell around 11%, the paper portfolio declined by less than 1%, indicating the strategy's resilience. The investment process is designed to minimise market impact through diversified positions and Aladdin's trading simulations, allowing the strategy to scale without materially affecting return expectations. Swaminathan noted that "The approach has been back-tested over five to seven years and has also been tracked through a paper portfolio during recent market volatility."
Alongside the product launch, JioBlackRock has crossed ₹20,000 crore in assets under management (AUM) within a little over a year of launch. According to the company, this includes around ₹5,500 crore from retail investors and more than 11.5 lakh retail accounts. Swaminathan emphasised that the focus remains on bringing innovative products to investors rather than pursuing a fixed AUM milestone, stating it's more about bringing new innovative solutions to the market and growing the market. "It's more about how are we bringing sort of new innovative solutions to the market, growing the market," he said, "rather than a fixed target of AUM."
The company plans to launch equity exchange-traded funds (ETFs) over the next one to two months and expand through its GIFT City platform to offer international investment opportunities for Indian and global investors. As reported by CNBC TV18, Swaminathan explained that the fund should not be confused with an equity fund, noting that if equity markets are rallying, this strategy will not keep track with that performance. Instead, it is designed to deliver steadier returns while protecting investors from sharp market declines. With the new Corporate Bond Fund now filed with SEBI, JioBlackRock is positioning itself to offer a diversified range of investment products across different asset classes.
