JioBlackRock Flexi Cap NFO: Rishi Kohli recommends SIPs for beginners, lump sums for experienced investors

JioBlackRock Asset Management has launched its Flexi Cap Fund, offering tailored investment approaches for different investor profiles. In an exclusive webinar, Rishi Kohli, Chief Investment Officer at JioBlackRock Asset Management, suggested SIPs for new investors and lump sum investments for experienced participants. Kohli stated, "Based on current signals and geopolitical scenarios, new investors can begin with SIPs, while seasoned investors can consider lump sums – since our aim is to manage risk and volatility while targeting alpha." The fund aims to address diverse investor needs by adapting strategies to market conditions, focusing on balancing risk and generating long-term growth.

The JioBlackRock Flexi Cap Fund is open for initial subscription until 7 October. After the allotment date, the fund will resume for continuous sale and repurchase within five business days, allowing flexibility for investors to enter or exit efficiently. The fund is an open-ended dynamic equity scheme, investing across large-cap, mid-cap, and small-cap stocks, seeking to generate long-term capital appreciation by spreading investments across market capitalisations.

Portfolio construction is powered by BlackRock’s Aladdin technology platform, licensed to JioBlackRock AMC. The process is enhanced by an optimisation system that combines a composite research score with additional inputs from the investment team, including risk constraints, transaction costs, and market liquidity, aiming for cost efficiencies.

The Flexi Cap Fund will allocate 65–100% of assets in equity and equity-related instruments spanning large, mid, and small cap companies, 0–35% in debt and money market instruments, and up to 10% in units of REITs and InvITs. The maximum total expense ratio permitted under regulatory guidelines is up to 2.25%, according to the scheme information document. The fund will be managed by Tanvi Kacheria and Sahil Chaudhary and benchmarked against the Nifty 500 Index (TRI).

A notable feature highlighted by Rishi Kohli is the adoption of Systematic Active Equity (SAE), which, according to Kohli, is "India's first active equity fund powered by Systematic Active Equity (SAE)." The SAE methodology aims to incorporate both traditional and alternative data sources, allowing the investment team to proactively respond to evolving market signals.

Kohli further emphasised that the fund’s strategy does not solely focus on alpha generation. He noted that risk and cost are also built into the process. This integrated approach is designed to deliver robust outcomes while maintaining effective risk control and cost management, important for investors navigating volatile markets.

The Aladdin platform is central to the fund’s operations, supporting scale and efficiency. As Kohli noted, "Our traditional plus alternative data approach helps us react faster. Aladdin, Blackrock’s end-to-end integrated platform, supports us in managing the fund at scale, with cost efficiencies." This integration allows the fund to stay agile and maintain a disciplined process regardless of market fluctuations.

He reiterated the importance of Aladdin for managing fund operations and cost controls, stating, "Aladdin, Blackrock’s end-to-end integrated platform, supports us in managing the fund at scale, with cost efficiencies." The use of this global platform aligns JioBlackRock’s processes with international best practices, potentially offering a competitive edge in India’s asset management industry.