JioBlackRock launches low and short duration debt funds for risk-averse investors

JioBlackRock Mutual Fund has introduced two new open-ended debt schemes: the JioBlackRock Low Duration Fund and the JioBlackRock Short Duration Fund, expanding its offerings within the fixed income segment. Both funds opened for subscription on 8 January and will remain available to investors until 13 January under the new fund offer process.

The schemes are aimed at individuals seeking exposure to debt and money market instruments with lower risk profiles than longer-term bond funds, amid ongoing fluctuations in interest rate expectations and increased demand for diversified debt investment options.

The JioBlackRock Low Duration Fund is categorised within the low duration debt segment, with an investment objective to generate income by maintaining a portfolio Macaulay duration between six and twelve months. The fund house has clarified that there is no assurance that the stated investment objective will be achieved.

Meanwhile, the JioBlackRock Short Duration Fund is designed to maintain a portfolio Macaulay duration between one and three years, also investing in money market and debt securities. Both schemes carry a minimum subscription requirement of ₹500, and subsequent investments may be made in any amount. In accordance with the offer details, "The scheme does not carry any exit load, according to the offer details."

Low and short duration debt funds typically appeal to investors who prefer to minimise interest rate risk by maintaining exposure to portfolios with shorter maturity profiles, compared to those offered by longer-duration bond funds. Nevertheless, these schemes remain subject to credit risk, interest rate movements, and broader market dynamics. The launches from JioBlackRock Mutual Fund add to the breadth of fixed income diversification choices now available to Indian investors, reflecting a trend towards tailored investment solutions in the country’s rapidly evolving mutual fund landscape.