JioBlackRock's ₹10 lakh-entry Prism fund opens a new investment avenue. Here's how it works, its risks and who should invest

JioBlackRock Asset Management has expanded its product suite with the launch of its first Specialised Investment Fund (SIF), marking its entry into a new investment category beyond traditional mutual funds. The Prism Hybrid Long-Short Fund opened for subscription on June 29 and will remain available until July 13, becoming one of the early offerings under the Securities and Exchange Board of India's (SEBI) recently introduced SIF framework.

The launch comes nearly a year after the asset management company entered India's mutual fund industry and signals its move into more sophisticated investment strategies aimed at high-net-worth investors.

What is the Prism Hybrid Long-Short Fund?

The Prism Hybrid Long-Short Fund is a multi-strategy interval investment scheme that combines equity, derivatives, fixed income and alternative investment opportunities within a single portfolio.

Unlike conventional equity or hybrid mutual funds, the scheme seeks to generate returns through multiple investment strategies rather than relying solely on stock market appreciation.

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Its investment approach includes options-based collar strategies designed to provide downside protection, merger arbitrage opportunities arising from corporate acquisitions, investments in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), as well as special situations such as IPO opportunities and tender offers.

The scheme will be benchmarked against the Nifty 50 Hybrid Composite Debt 50:50 Index (TRI).

Asset allocation and investment strategy

The fund will maintain 35-75% exposure to equities, while hybrid investments can account for 0-20% of the portfolio. At least 25% will remain invested in fixed-income securities, primarily to provide liquidity, collateral and portfolio stability.

JioBlackRock said the strategy will leverage BlackRock's Systematic Active Equity (SAE) investment model, which uses quantitative signals, big data and machine learning to identify investment opportunities. Portfolio construction and risk management will be supported by Aladdin, BlackRock's institutional investment and risk management platform.

According to the fund house, the objective is to deliver better risk-adjusted returns through active hedging, disciplined position sizing and diversified sources of return across market cycles.

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Prism Hybrid Long-Short Fund

Detail            Specification
Category    Hybrid Long-Short Fund (SIF)
Benchmark    Nifty 50 Hybrid Composite Debt 50:50 Index (TRI)
NFO opens    Monday, 29 June 2026
NFO closes    Monday, 13 July 2026
Min. investment    ₹10,00,000 (lump sum)
Min. SIP    ₹10,000 (only with ₹10 lakh subscription)
Exit load    Nil
Redemption    Every Monday and Wednesday
Fund managers    Arun Ramachandran, Tanvi Kacheria, Siddharth Deb, Virendra Kumar

Who can invest?

The fund is available under both Direct and Regular plans with the Growth option. However, in line with SEBI's SIF regulations, investors must make a minimum investment of ₹10 lakh.

While systematic investment plans (SIPs), systematic transfer plans (STPs) and systematic withdrawal plans (SWPs) will be available on an ongoing basis, SIPs can only be registered after meeting the ₹10 lakh minimum investment requirement.

Unlike open-ended mutual funds that allow daily redemptions, the Prism Hybrid Long-Short Fund follows an interval structure, allowing investors to redeem units only on Mondays and Wednesdays. There is no exit load.

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JioBlackRock's expanding product portfolio

JioBlackRock Asset Management is a 50:50 joint venture between Jio Financial Services and BlackRock. After receiving SEBI's final registration in May 2025, the AMC launched its first three debt schemes—Overnight Fund, Liquid Fund and Money Market Fund—which collectively mobilised around ₹17,800 crore during their new fund offers.

It subsequently expanded into passive index funds and active equity products with the launch of the JioBlackRock Flexi Cap Fund. The asset manager now oversees around ₹17,000-17,500 crore in assets across nearly 14 schemes spanning debt, passive and equity categories.

Among its existing offerings, the debt funds have delivered relatively stable returns since inception, broadly in line with prevailing short-term interest rates, while the Flexi Cap Fund remains in its early stages with a limited performance history.

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What should investors consider?

The Prism Hybrid Long-Short Fund is structurally different from conventional mutual funds. The high minimum investment requirement restricts participation largely to affluent investors, while the twice-weekly redemption window reduces liquidity compared with open-ended schemes.

The strategy also relies heavily on quantitative models and derivatives-based investing, making it more complex than traditional equity or debt funds. As an SIF product, it carries relatively higher investment risk, including the possibility of capital loss.

For investors seeking portfolio diversification and exposure to alternative investment strategies within a SEBI-regulated framework, the fund offers a differentiated option. However, given that both the SIF category and the strategy are new, investors may benefit from carefully evaluating the scheme information document, investment objectives and risk factors before making an investment.

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