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The joint venture between Mukesh Ambani‘s Jio Financial Services and the world’s largest asset manager has amassed about 180 billion rupees ($1.9 billion) in assets under management in roughly a year since its launch by building a base in cash, debt-index and active equity funds.
It plans to start with equity-focused ETF strategies.
BlackRock oversees about $5.1 trillion in ETF assets globally, more than a third of its total assets under management, underscoring the importance of the product line to its franchise. Jio BlackRock currently ranks as India’s 29th-largest asset manager.
“ETFs are a long-term play. While it is a predominantly institutional heavy market (in India), retail are starting to get more involved in ETFs. And we can see from global trends how well ETFs have been adopted as a choice for investing,” Sid Swaminathan, managing director and chief executive officer of Jio BlackRock Asset Management, told Reuters.
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ETF INNOVATION COULD BOOST LIQUIDITY
Passive mutual fund assets in India stood at 15.20 trillion rupees in April, or about 18.5% of the industry’s 81.94 trillion rupees in average assets under management, according to data from the mutual fund industry association.
By comparison, equity index funds and ETFs account for about 45.3% of long-term mutual fund and ETF assets in the U.S.
Swaminathan said tighter bid-offer spreads and more innovative strategies could help improve liquidity and boost retail participation in Indian ETFs.
The company also plans to launch products in Gujarat International Finance Tec-City (GIFT City), India’s low-tax financial hub competing with centres such as Singapore and Dubai, within the next couple of months.
COMPLEX PRODUCTS PROMPT PIVOT TO DISTRIBUTOR-LED MODEL
For more complex offerings, including special investment funds and GIFT City products, Jio BlackRock has adopted a distributor-led model rather than a digital-first approach, reflecting the continued role of advisers in selling higher-ticket products.
Swaminathan said the decision to prioritise those launches was partly shaped by market conditions. India’s benchmark Nifty 50 is down 11.1% so far in 2026 amid foreign outflows, higher oil prices and moderating earnings growth, while MSCI’s Asia-Pacific ex-Japan index is up 18.2%.
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