In a masterclass session, ‘The Power of Index Investing with Jio BlackRock’, powerhouse Komal Narang, Chief Client Officer at Jio BlackRock AMC, decoded financial complexity, explored the rise of index investing, and shared how every Indian can build long-term wealth with confidence. The session, moderated by Neeraj Gogoi, Derivatives Trader and Trading Coach, shed light on the purpose and strategy behind Jio BlackRock AMC and provided practical insights into passive investing.
Narang highlighted that the joint venture between Jio Financial Services and BlackRock is built on three pillars—asset management, wealth management, and broking—with the asset management arm already live. Index fund offerings are set to begin from August 5, and the focus is to build a customer-first, digitally disruptive brand anchored in trust and expertise.
Boosting Digital Ecosystem
Discussing the rising popularity of index funds, she emphasized how maturing Indian investors are now embracing market-linked returns. Index funds optimize volatility and eliminate human bias, offering a cost-efficient solution for building wealth. Their accessibility has also been boosted by India’s growing digital ecosystem.
She explained that index funds offer natural diversification, helping investors cushion against sector-specific risks. With varied options across market caps and sectors, index funds can serve as the ‘core’ of a portfolio, around which other strategies can be added. For first-time investors, fund selection should align with personal risk appetite and financial goals, and consistency is more important than chasing high returns. She also underscored that while index funds optimize risk, they still carry equity market risk. Importantly, they aim to match—not beat—the market, so cost and tracking error are crucial factors in long-term return potential.
Ensuring Efficient Fund Operations, Minimal Tracking Error
On launching five index funds together, Narang explained that the idea is to offer investors a full spectrum of options—Nifty50, Next50, Midcap, Smallcap, and a G-Sec fund—either as a complete basket or as standalone choices. These funds are powered by BlackRock’s proprietary Aladdin platform, ensuring efficient fund operations and minimal tracking error. Jio BlackRock is also launching these funds with competitively low TERs of 10–15 bps, reinforcing its cost-sensitive approach. The session wrapped with a clear understanding of passive versus active strategies and how Jio BlackRock’s tech-led, transparent model offers a compelling proposition for modern Indian investors.
The session gave investors a deeper understanding of passive versus active investing, the strengths of index fund strategies, and the rationale behind Jio BlackRock’s offerings. With a customer-first approach, cutting-edge technology, and transparent pricing, Jio BlackRock AMC is setting new standards in the Indian investment landscape.
