CFP breaks down JioBlackRock NFO: Is it really worth the hype or just noise?

It’s one of the most talked-about new funds in India. But CFP Kirtan A Shah says the JioBlackRock Flexicap NFO may be all hype—and no real edge.

Writing on LinkedIn, Shah questioned why investors would choose a fund with no track record when more than 25 Flexicap funds already exist with over a decade of proven performance. “Why invest in a fund with no history?” he asked.

The fund’s backers have promoted its Systematic Active Equity (SAE) approach and BlackRock’s Aladdin platform, which uses data and tech to screen stocks and manage risk. But Shah remains unimpressed.

“In the fund management business, there’s no information arbitrage,” he wrote. “No fund manager has access to something others don’t.”

He backed up his critique with performance data from BlackRock’s own funds:

• BGF India Fund: underperformed the index by 4.5% over 5 years, and 3.6% over 3 years
• Emerging Markets Fund: underperformed by 2.75% (5 years), 3% (3 years), and 7.75% in the past year

Shah also raised doubts about the fund’s leadership team. One fund manager last worked on multi-asset strategies; the other focused on ETFs and index funds—neither with a clear record in active equity management.

While the fund boasts a low total expense ratio (TER) of 0.50%, Shah questioned whether that’s enough to justify taking a chance. “The fund may do well—and my best wishes—but my only question is: why choose this over so many better-known options?”