Why Jio BlackRock feels hybrid long-short is the perfect fund to launch now as it enters the SIF space
Jio BlackRock Asset Management is also gearing to launch operations in GIFT City, Gujarat in the next few months, with the entity securing all necessary approvals, Sid Swaminathan, the MD and CEO tells Business Today
- Jun 29, 2026,
- Updated Jun 29, 2026 6:15 PM IST
Jio BlackRock, the asset management joint venture between Mukesh Ambani-owned Jio Financial Services and BlackRock, the world’s largest asset manager, launched its first fund offer in the domestic market back on June 30, 2025.
Nearly a year later, Jio BlackRock is now launching its first offering in the specialised investment fund (SIF) space – Prism Hybrid Long-Short Fund.
SIF is a new asset class that was introduced by the Securities and Exchange Board of India in late 2024 and the framework for the same was notified in February 2025. It essentially aims to bridge the gap between traditional mutual funds and portfolio management services.
Must Read | Why Jio BlackRock's CIO feels the road ahead for equity investors is not easy
SIFs are similar to mutual funds in terms of regulatory oversight, but they are also allowed to take derivative positions, which a normal mutual fund can’t. Designed for a slightly more sophisticated investor, there is a minimum investment threshold of Rs 10 lakh for SIFs.
Jio BlackRock’s first launch in this space is a hybrid long-short fund. It seeks to generate long-term capital appreciation along with income by investing across equity, debt, derivatives and alternative opportunities.
By combining long positions, limited short exposure through derivatives, fixed income and differentiated investment opportunities such as merger arbitrage, collars (a options-based technique to limit potential losses in a stock position), REITs (real estate investment trusts), InvITs (infrastructure investment trusts) and special situations, the strategy aims to deliver improved risk-adjusted returns while maintaining relatively lower portfolio volatility and drawdowns, it said.
At a time, the market has delivered lacklustre returns over 12-18 months and there has been a lot of volatility due to geopolitical uncertainties, such a product will be extremely suitable, feels Sid Swaminathan, the MD and CEO of Jio BlackRock Asset Management.
“The key benefit of the hybrid structure is you are able to put together these diversifying sources of returns to create a fund that effectively is getting you close to 9-10-11 per cent returns, but at a much lower level of risk than equities,” he said.
Must Read | After going digital direct with its MF, Jio BlackRock is tapping distributors for its SIF. Here’s why
Several other SIF managers also have launched hybrid SIFs amid the market volatility. The initial response has been strong with a little over 70 per cent of SIF AUM now in the hybrid category. At the end of May 2026, the net AUMs across the SIF industry stood at Rs 13,813 crore, with net AUM of hybrid long-short funds at Rs 9,709 crore.
Jio BlackRock had started offering mutual funds last year, through a direct channel. It so far has 14 schemes on offer across equity, debt and index funds. But, now as its fund offerings have expanded and its also entering the SIF category, its also tapping into the vast distribution channel as it charts its next phase of growth.
Jio BlackRock is also set to launch operations in GIFT International Financial Services Centre in Gujarat in the coming months. Swaminathan told Business Today that all approvals have been secured for the GIFT City entity and it is in the process of filing applications for the first set of funds.
Jio BlackRock plans to offer inbound as well as outbound investment funds through GIFT City. So, on the one hand, it will offer investors global exposure through some of BlackRock’s funds and also offer India focused funds for overseas investors looking to invest here.
Jio BlackRock, the asset management joint venture between Mukesh Ambani-owned Jio Financial Services and BlackRock, the world’s largest asset manager, launched its first fund offer in the domestic market back on June 30, 2025.
Nearly a year later, Jio BlackRock is now launching its first offering in the specialised investment fund (SIF) space – Prism Hybrid Long-Short Fund.
SIF is a new asset class that was introduced by the Securities and Exchange Board of India in late 2024 and the framework for the same was notified in February 2025. It essentially aims to bridge the gap between traditional mutual funds and portfolio management services.
Must Read | Why Jio BlackRock's CIO feels the road ahead for equity investors is not easy
SIFs are similar to mutual funds in terms of regulatory oversight, but they are also allowed to take derivative positions, which a normal mutual fund can’t. Designed for a slightly more sophisticated investor, there is a minimum investment threshold of Rs 10 lakh for SIFs.
Jio BlackRock’s first launch in this space is a hybrid long-short fund. It seeks to generate long-term capital appreciation along with income by investing across equity, debt, derivatives and alternative opportunities.
By combining long positions, limited short exposure through derivatives, fixed income and differentiated investment opportunities such as merger arbitrage, collars (a options-based technique to limit potential losses in a stock position), REITs (real estate investment trusts), InvITs (infrastructure investment trusts) and special situations, the strategy aims to deliver improved risk-adjusted returns while maintaining relatively lower portfolio volatility and drawdowns, it said.
At a time, the market has delivered lacklustre returns over 12-18 months and there has been a lot of volatility due to geopolitical uncertainties, such a product will be extremely suitable, feels Sid Swaminathan, the MD and CEO of Jio BlackRock Asset Management.
“The key benefit of the hybrid structure is you are able to put together these diversifying sources of returns to create a fund that effectively is getting you close to 9-10-11 per cent returns, but at a much lower level of risk than equities,” he said.
Must Read | After going digital direct with its MF, Jio BlackRock is tapping distributors for its SIF. Here’s why
Several other SIF managers also have launched hybrid SIFs amid the market volatility. The initial response has been strong with a little over 70 per cent of SIF AUM now in the hybrid category. At the end of May 2026, the net AUMs across the SIF industry stood at Rs 13,813 crore, with net AUM of hybrid long-short funds at Rs 9,709 crore.
Jio BlackRock had started offering mutual funds last year, through a direct channel. It so far has 14 schemes on offer across equity, debt and index funds. But, now as its fund offerings have expanded and its also entering the SIF category, its also tapping into the vast distribution channel as it charts its next phase of growth.
Jio BlackRock is also set to launch operations in GIFT International Financial Services Centre in Gujarat in the coming months. Swaminathan told Business Today that all approvals have been secured for the GIFT City entity and it is in the process of filing applications for the first set of funds.
Jio BlackRock plans to offer inbound as well as outbound investment funds through GIFT City. So, on the one hand, it will offer investors global exposure through some of BlackRock’s funds and also offer India focused funds for overseas investors looking to invest here.