BlackRock Inc.’s joint venture in India with billionaire Mukesh Ambani’s conglomerate anticipates the local mutual fund industry, currently valued at approximately $900 billion, to grow up to threefold over the next seven years. This growth is expected to be driven by record inflows from domestic investors amid a robust economic environment.
Sid Swaminathan, Chief Executive Officer of Jio BlackRock Asset Management—a partnership between Ambani’s Jio Financial Services Ltd. and BlackRock, the world’s largest asset manager—highlighted that participation in Indian financial markets is rapidly increasing, largely through digital platforms.
Ambani’s strategy aims to transform India’s financial services landscape by leveraging his extensive telecom and retail networks. For BlackRock, this venture represents a return to India’s burgeoning market after its withdrawal from the country’s money management sector in 2018.
A significant shift in household savings, moving away from traditional assets such as gold and real estate towards financial instruments, has contributed to explosive growth in the domestic mutual fund sector. In the last five years, assets in this sector have more than doubled.
“Being in India at this point in its economic journey, there are so many tailwinds in our favor,” Swaminathan stated in an interview with Bloomberg News, noting his prior 20-year tenure with BlackRock in London.
India’s equity markets have surged, surpassing $5.3 trillion over the past five years, attracting millions of retail investors. However, Jio BlackRock faces considerable competition from established fund houses linked to major banks like HDFC Bank Ltd., ICICI Bank Ltd., and State Bank of India, which hold extensive distribution networks that reach smaller towns and rural areas. The rise of online investment platforms such as Groww and Zerodha is also facilitating direct mutual fund sales.
Despite the competition, investor interest remains strong. The Jio BlackRock venture raised over $2 billion within three days for its inaugural funds in July, positioning it among the top 15 asset managers in its category.
“For us to operate as a significant player in the next five years, it needs to be about expanding the market rather than solely capturing market share from existing players,” Swaminathan explained.
To achieve this goal, the asset manager is preparing a blend of passive and active investment strategies, with its first active equity fund set to launch next week. This fund will utilize nearly 400 indicators across approximately 1,000 Indian stocks, aiming to build a diversified portfolio.
Additionally, the venture intends to introduce a fund that rotates between sectors based on quantitative signals and is examining the development of another fund that systematically allocates among asset classes, according to Swaminathan. The partnership recently appointed Rishi Kohli, who previously directed hedge fund quantitative strategies at InCred Capital and Avendus, as its Chief Investment Officer.
Swaminathan emphasized the substantial growth potential for systematic strategies in India, given the sector’s low starting point, and described an approach that combines data-driven analytics with human insights. As the market matures with an increase in available stocks and greater industry diversity, such strategies could become more viable.
The Jio BlackRock partnership, which encompasses asset management, wealth management, and equity broking, is implementing a direct-to-consumer strategy through its app, circumventing traditional brokers and distribution channels.
A significant market downturn could potentially hinder the sector’s growth trajectory. Indian equities have lagged behind their emerging-market counterparts over the past year, partly due to weak earnings growth and inflated valuations. Nevertheless, retail fund flows remain resilient, with monthly systematic investment plans exceeding $3 billion in August, despite a retreat by foreign investments.
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Published on September 17, 2025.
