In response to Jioblackrock’s entry into the competitive asset management sector, market leader SBI Mutual Fund articulated its understanding of investor needs and the competitive pricing of its products. DP Singh, the Deputy Managing Director and Joint Chief Executive of SBI Mutual Fund, expressed confidence that the new entrants would expand the market, ultimately benefitting SBI MF.
“They (Jio) will want to succeed, and we wish them all the best. However, we have significant experience in understanding investor behavior,” Singh remarked during a company event. He noted that while Jioblackrock has raised ₹18,000 crore for its inaugural funds, its current assets under management remain “much below” that amount.
On the topic of Jioblackrock’s aggressive pricing strategy—offering a 0.5% total expense ratio for its flexi-cap fund—Singh maintained that SBI MF offers comparable, if not better, pricing. “If one compares our direct plan with that of Jio AMC, it is evident that we offer competitive rates. Whatever they charge in their direct plan today, we match or offer lower rates,” he stated.
Singh also expressed skepticism about the effectiveness of a purely digital strategy within the mutual fund sector but acknowledged that the broader industry must focus on growing the overall market. According to him, the mutual fund industry’s assets under management represent only 30% of bank deposits in India, compared to 100% in several other countries. Furthermore, there are 5 crore portfolios managed by asset management companies in India, compared to over 80 crore bank accounts, indicating a significant potential for growth.
Jioblackrock AMC launched its flexi-cap fund at competitive pricing and aims to capture a substantial share of the mutual fund market, which it forecasts will triple in size over the next five to seven years. The company intends to leverage digital technologies to reduce costs.
In the meantime, SBI MF has announced a new Specialized Investment Fund (SIF) called ‘Magnum SIF’, expecting over 15,000 investors to participate, with a minimum investment requirement of ₹10 lakh. Singh mentioned that the target audience includes retirees and long-term investors, and the company has introduced a hybrid long-short fund strategy as part of this offering.
The subscription period for the new fund will run from October 1 to 15, with Singh recommending a minimum investment duration of two years for optimal returns. He acknowledged the challenges in educating investors about this new product category, which falls between mutual funds and alternative investment funds, but expressed confidence that positive performance would attract more investments in the future.
Back-testing has indicated that this new fund could deliver satisfactory returns, and Singh added that its favorable tax treatment would make it an attractive option for investors.
Published on September 24, 2025.
