Next week, Jio BlackRock is set to launch five new index funds, available only in direct, growth, and equity modes, including one debt fund. The starting investment is set at ₹500. These funds will be available for subscription from August 5 to August 12. Jio BlackRock Mutual Fund House is set to offer five new index funds via NFO (New Fund Offer) next week. Out of these, four are equity funds and one is a debt fund, which are government securities. The funds to be offered are Jio BlackRock Nifty 150 Index Fund, Jio BlackRock Nifty Next 50 Index Fund, Jio BlackRock Nifty Smallcap 250 Index Fund, JioBlackRock Nifty 50 Index Fund and Jio BlackRock Nifty 8-13 Yr G-Sec Index Fund. There will be an NFO period of August 5 to August 12 for these funds.All funds will be available only under direct plan. All Jio BlackRock Mutual Fund schemes will be offered only under direct plan and every fund will only have a growth option. Every fund can be accessed through lumpsum investment starting with ₹ 500. Subsequent investments can be in any amount. These funds can also be accessed through SIP investment starting with ₹ 500 and increasing in 1-rupee increments. Market linked funds number 1-4 will be co-managed by Tanvi Kacheria, Anand Shah, and Harsh Mehta. The other co-managers, Vikrant Mehta, Siddharth Deb, and Arun Ramachandran will manage Jio BlackRock Nifty 8-13 Year G-Sec Index Fund.Jio BlackRock Nifty Midcap 150 Index FundThis fund is intended to track the Nifty Midcap 150 Index which means that this fund will buy the stocks of the 150 midcap companies that are part of this index. The fund’s primary objective is to match the index’s returns. However, the fund is classified as very risky because of greater volatility with midcap stocks. There are longer-term benefits if you invest for many years. The fund is aiming to invest approximately 95% to 100% of the funds into stocks that are part of Nifty Midcap 150. The remaining 0% to 5% will be invested in safer instruments like government bonds or cash.Jio BlackRock Nifty Next 50 Index FundAn open-end mutual fund that will track the Nifty Next 50 Index. The aim of the fund is to invest in the stocks of the companies that comprise the Nifty Next 50 Index and derivative securities, so that investors receive returns comparable to the index’s performance. It’s performance will be evaluated against the Nifty Next 50 Index (TRI).Jio BlackRock Nifty Smallcap 250 Index FundAlso, an open-end scheme will track Nifty Smallcap 250 index. The mutual fund will invest in the shares of the companies forming part of the Nifty Smallcap 250 Index and other securities so that investors receive returns aligned with the index. The fund’s benchmark is Nifty Smallcap 250 Index (TRI). The scheme will invest 95-100% of the corpus in equity shares of the constituent companies, with 0-5% allocated to debt and money market instruments.Jio BlackRock Nifty Next 50 Index Fund One of the open-ended mutual funds is ‘Jio BlackRock Nifty Next 50 Index Fund’, which seeks to replicate the performance of the Nifty Next 50 Index. The fund attempts to match the returns of the Index by investing in the stocks of the companies which are part of Nifty Next 50 Index and their related securities. The fund performance is benchmarked to the Nifty Next 50 Index (TRI). Jio BlackRock Nifty 8-13 Yr G-Sec Index Fund This mutual fund also maintains an open-ended structure and seeks to replicate the Nifty 8-13 Year G-Sec Index. It has a marginally greater exposure to interest rate risk but a lower risk to credit events. The objective of this Fund is ensuring capital preservation and generating steady returns by predominantly investing in sovereign bonds. Over 95% of the fund will be allocated to these government bonds and the rest to other very low risk securities.
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