Jio BlackRock Mutual Fund to roll out Liquid Fund NFO, savers hit by falling interest rates take note

Jio BlackRock Mutual Fund is set to launch its first liquid fund, with the new fund offer (NFO) opening on 30th June 2025 and closing on 2nd July 2025. The launch comes at a time when banks have reduced interest rates on savings accounts, potentially making the liquid fund an attractive option for investors seeking better returns on idle cash. The fund is designed to offer short-term liquidity and low risk, a characteristic that may appeal to those looking to manage surplus money more effectively.

The JioBlackRock Liquid Fund will invest in ultra-short-term money market and debt instruments with maturity up to 91 days. The scheme's risk profile is rated as "low to moderate risk" according to its Risk-o-Meter, and it will be benchmarked against the Nifty Liquid Index A-I.

"We optimise everything, rewards, routines, returns. But when it comes to idle cash, we often overlook its potential. Presenting JioBlackRock Liquid fund. Where you can put your surplus money to work, disciplined, monitored, and managed with global insight," stated Jio Black Rock Mutual Fund.

The provisional credit rating for the fund is [ICRA]A1+mfs, based on the scheme's indicative portfolio. "As the schemes are yet to be launched, the provisional rating is based on the indicative/allocated portfolio of the schemes with the credit score being comfortable at the assigned rating level," according to ICRA's release dated 26th June 2025. The rating will be finalised once the 3-month portfolio data becomes available. This provisional rating provides some assurance to potential investors about the fund's stability.

A tiered exit load is applicable for the initial days, beginning at 0.00070% for Day 1 and reducing to 0.0045% for Day 6. From Day 7 onwards, there will be no exit load. Such a structure encourages investors to consider this fund for short-term parking of surplus cash, especially given its low risk and the decreased interest rates on savings accounts at major banks like SBI and HDFC Bank.

The liquid fund is marketed towards investors who seek regular income over a short-term horizon while minimising risk exposure. Although liquid funds typically offer returns of around 5-6%, the current low interest rate environment, triggered by RBI's repo rate cut, may impact these returns. Investors are advised to consult financial advisors, considering Jio BlackRock's lack of a track record as a new fund house.

In addition to the liquid fund, Jio BlackRock previously launched the Jio BlackRock Overnight Fund on June 16, 2025. This scheme targets ultra-short-term investors, offering modest returns with zero exit load, and requires a minimum investment of Rs 100. The overnight fund is classified in SEBI’s A-I category, indicating a low risk profile.

Liquid funds typically offer low interest rates and minimal credit risks, making them a safe choice for investors seeking to temporarily park surplus funds. These funds lend to companies for up to 91 days, offering a balance between security and potential returns. Despite this security, investors are reminded to temper expectations regarding high returns, as liquid funds are not designed to outperform significantly.