After months of waiting, Jio BlackRock Mutual Fund has officially opened. The much-talked-about partnership between Jio Financial Services and BlackRock is now a reality, and they’re starting with three debt funds that you can invest in right now.
If you have been following the mutual fund space, you know this launch has been anticipated for a while. The NFO opens on Monday, June 30, and closes on July 2; that’s just three days to decide if you want in on the ground floor.
Jio BlackRock Debt Schemes
Jio BlackRock isn’t trying to reinvent the wheel here. They’ve launched three straightforward debt schemes that cover the basics most investors need.
Liquid Fund
The Liquid Fund is probably what most people will be interested in first. It invests your money in very short-term debt instruments — things that have to mature in less than 91 days. You can imagine it as the next stage of your savings account. Its cost of entry is only ₹500, fairly affordable. It has an exit load amounting to 0.0070 percent in case you roll back on the first day, but that goes away after a week.
Money Market Fund
The Money Market Fund is a little bit longer, with up to a year of maturity. It targets individuals who wish to invest in some short-term parking of money without the fear of major fluctuations in value. Minimum ₹500 — same, no exit load whatsoever.
Overnight Fund
The Overnight Fund happens to be the most conservative among the group. Your money is invested in instruments that mature daily. It is as secure as possible in the jungle of mutual funds, with virtually non-existent interest rate risk. Once again, a minimum of ₹500, without any exit fees.
Overview Of Jio BlackRock Debt Schemes
| Fund Name | Investment Duration | Maturity Period | Minimum Investment | Exit Load | Target Investors |
|---|---|---|---|---|---|
| Jio BlackRock Liquid Fund | Short-term | Up to 91 days | ₹5000.00 | 0.0070% (Day 1), Zero from Day 7 | Regular income seekers |
| Jio BlackRock Money Market Fund | Medium-term | Up to 1 year | ₹500 | No exit load | Stable parking option |
| Jio BlackRock Overnight Fund | Very short-term | Overnight maturity | ₹500 | No exit load | Daily liquidity needs |
Reason For Three Schemes
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It is rational that a new player should start with debt funds. These are not the sizzling, high-performance, in-and-out funds that make the headlines, but the meat of the majority of portfolios. Every person requires a space to put back-up cash or isolated savings, and these are as effective as a normal savings bank account.
The Overnight Fund is very interesting as it is a relatively new product in India. Most individuals are not even aware of the existence of such a category, and yet this is basically the safest mutual fund investment one can make.
The Jio Factor
This is not a new mutual fund company. Jio Financial Services offers the potential of reaching countless retail outlets — they understand how to place financial products in the hands of ordinary Indians who may have never considered mutual funds in their lifetimes. BlackRock contributes investment expertise and international experience.
Why Should You Even Care?
That is the nature of new fund launches: no track record against which to evaluate. These funds lack performance track records, proven fund managers, and processes. You are playing roulette with the brand and the potential of the team.
However, debt funds are not the same as equity funds. The stock-picking expertise of the fund manager is less important when you are more or less purchasing short-term debt. The more significant things are the processes, risk management, and cost structure.
The ₹500 requirement in all schemes is genuinely low. The minimums are now quite similar in most mutual funds, but this reduces the barrier to entry for first-time investors.
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