Jio Financial Takes on MF Market with Aggressive Pricing
Jio Financial Services' mutual fund division introduces an aggressive pricing strategy with its Jioblackrock Flexi Cap Fund, offering one of the lowest expense ratios in the market at 0.50%. The fund, a joint venture with BlackRock, leverages technology and direct selling for cost-effective offerings.
- Country:
- India
Jio Financial Services' mutual fund arm revealed an aggressive pricing strategy with the launch of its first active fund scheme on Tuesday. The Jioblackrock Flexi Cap Fund offers a total expense ratio of just 0.50%, making it one of the most competitively priced options in its category.
The Jioblackrock Asset Management, established as a partnership between Reliance Industries and international asset manager BlackRock, aims to penetrate the crowded mutual fund sector, which hosts over 40 competitors. Jio's track record of aggressive pricing, notably through Jio Infocomm, sets a precedent within the market.
Sid Swaminathan, the managing director and CEO of the AMC, hinted at similar pricing strategies in future offerings. He emphasized the potential to pass on cost savings to investors by using technology and direct selling strategies. Moreover, the fund also incorporates BlackRock's advanced 'Systematic Active Equities' platform, promising enhanced long-term returns.
(With inputs from agencies.)
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