JioBlackRock Mutual Fund has introduced its first actively managed Flexi Cap Fund, boasting the lowest total expense ratio in the country at 0.50 percent. This fund marks a significant innovation in the Indian market as it is the first active equity fund powered by artificial intelligence (AI), designed to invest in large-cap, mid-cap, and small-cap companies.
The fund will utilize BlackRock’s proprietary Systematic Active Equity (SAE) strategy, which integrates traditional and alternative data sources to produce research scores that inform investment decisions. The SAE strategy involves continuous signal generation through machine learning and advanced analytics, applied to extensive sets of both structured and unstructured data. According to the fund house, this approach enhances the ability to identify alpha opportunities while providing a benchmark-aware, risk-controlled mechanism to navigate varying market conditions.
Investment decisions will be made based on these generated scores, complemented by the fund manager’s judgment to construct a high-conviction, data-driven portfolio consisting of 120 to 130 stocks. Rishi Kohli, Chief Investment Officer at JioBlackRock Asset Management, indicated that the fund would leverage alternative data across various sectors available through BlackRock to enhance portfolio performance, all while blending AI and human expertise.
The portfolio will undergo weekly reviews and adjustments to optimize returns for investors. Sid Swaminathan, Managing Director and CEO of Jio BlackRock AMC, emphasized that mutual fund investors in the industry should remain optimistic about long-term growth in India, despite potential geopolitical challenges. The fund house aims to focus on tapping promising domestic growth prospects through distinctive product offerings.
The unique feature of this flexi-cap fund lies in its signal-based investing approach, which combines AI and human insights to evaluate over 1,000 companies within a cost-efficient structure.
The fund was officially announced on September 23, 2025.
