Jio BlackRock Debuts Five New Low‑Cost Index Funds!!

Jio BlackRock Debuts Five New Low‑Cost Index Funds: What Investors Should Know

Published: July 26, 2025

Jio BlackRock Mutual Fund has just received SEBI’s approval to launch five new low-cost index funds in India—four focused on equity and one on government securities—underscoring its rapid expansion in the country’s passive fund segment. 

The New Fund Lineup

All five funds will be available under direct plans with a growth option only, ensuring minimal costs for investors. The minimum investment—both for lump sum and SIP—is just ₹500

Fund Name	Asset Class	Benchmark	Allocation (Equity/Debt)
Nifty 50 Index Fund	Large‑cap equity	Nifty 50 TRI	95‑100% equity, up to 5% debt
Nifty Next 50 Index Fund	Equity (51‑100)	Nifty Next 50 TRI	Similar split
Nifty Midcap 150 Index Fund	Mid‑cap equity	Nifty Midcap 150 TRI	Similar construction
Nifty Smallcap 250 Index Fund	Small‑cap equity	Nifty Smallcap 250 TRI	Same approach
Nifty 8–13 yr G‑Sec Index Fund	Government bonds	Nifty 8‑13 Yr G‑Sec Index	95‑100% gilts, up to 5% cash

Why This Matters

• Industry Disruption: Jio BlackRock is leaning into a digital-first, commission-free model that leverages Jio’s vast ecosystem and BlackRock’s Aladdin risk management platform. 

• Broad Investor Appeal: The ₹500 minimum makes these funds accessible to retail investors—even those starting SIPs with small amounts . 

• Cost‑Efficient Index Investing: Equity funds likely carry a Total Expense Ratio (TER) of ~0.10–0.15%; the G‑Sec fund is expected to be priced even lower. This is competitive among existing index offerings

Fund Management & Strategy

• Equity funds (Nifty 50, Next 50, Midcap 150, Smallcap 250) are managed by Tanvi Kacheria, Anand Shah, and Haresh Mehta.

• The G‑Sec fund will be overseen by Vikrant Mehta, Siddharth Deb, and Arun Ramachandran.

• Each fund will closely replicate its benchmark index, with up to 5% in debt or cash to manage tracking error and liquidity. 

Context: Jio BlackRock’s Market Position

• Strong debut: The firm's first three debt schemes garnered ₹17,800 crore (~$2.1 billion) in subscriptions within days, attracting over 67,000 retail and 90 institutional investors. 

• Focused expansion: With five more schemes in the pipeline and possibly more launches by year-end, the AMC aims to stake a claim in India’s passive investing boom. 

• Digital advantage: By cutting out distributors and offering direct plans, Jio BlackRock can deliver ultra-low costs and tap into Jio’s massive digital audience

Should Investors Consider These Funds?

Pros:

• Low cost, direct plans → better long-term compounding

• Diversified access, from large caps to small caps to government bonds

• Low entry point makes SIPs feasible even for budget investors

• Professional management backed by BlackRock’s global infrastructure

Cons:

• New AMC with limited track record in India

• Tracking error risk if passive replication differs from benchmarks

• Exclusive growth option may limit income-focused investors (no dividend payout available)

Investor Guidance

• Use SIPs (Systematic Investment Plans) starting from ₹500/month to gradually build exposure across large-, mid-, and small-cap equities.

• Consider the G‑Sec fund for medium-duration fixed income exposure with low credit risk.

• Monitor expense ratios, tracking error, and fund positioning relative to existing low-cost index funds.

• Always ensure your risk profile and time horizon align with the fund's strategy—small‑cap funds come with higher volatility, while equity indices depend on market cycles.

Final Thought

Jio BlackRock's five new funds mark a landmark in India's passive investing narrative. With direct plans, ultra-low entry points, and a digital-first distribution model, these offerings could redefine access for retail investors. But as with any investment, doing your homework, aligning with your goals, and staying disciplined will determine your success.