In a significant development for the Indian mutual fund landscape, Jio Financial Services Ltd and BlackRock Financial Management have joined forces to carve out a pioneering path. Documents filed with the Securities and Exchange Board of India (SEBI) reveal their collaborative endeavor to launch a mutual fund business. The joint venture’s application, submitted on October 19, 2023, is currently under SEBI’s scrutiny for in-principle approval.
The latest update, as of December 31, 2023, underscores the ongoing consideration of the in-principle approval with SEBI. Concurrently, Abira Securities, a distinguished Kolkata-based stock broking house founded in 2012, has rekindled its pursuit of a mutual fund license. Despite an initial application in April 2022, Abira Securities found its name conspicuously absent from subsequent lists, prompting a renewed effort.
Similarly, Angel One Limited has secured in-principle approval on February 8, 2023, marking its foray into the evolving mutual fund landscape. While awaiting the final nod from the regulator, Angel One Limited has already etched its presence in the industry.
The current dynamics of the Indian mutual fund industry depict a highly competitive sector with 45 participants, collectively managing assets exceeding Rs 50 trillion. The year 2023 witnessed the entry of three noteworthy players, each contributing to the sector’s diversification.
Bajaj Finserv Asset Management emerged on the scene, unveiling its inaugural scheme in June. Samir Arora’s Helios Mutual Fund made its presence felt with the launch of its first scheme in October. Around the same timeline, Zerodha Fund House adopted a strategic approach, revealing its first two schemes, steering towards a passive investment strategy.
The coming year holds promise with several new entrants set to debut. Kenneth Andrade’s Old Bridge Capital Management secured SEBI’s final approval earlier in the year, signaling its readiness for the market. In November, Unifi Capital Pvt Ltd, a portfolio management firm, achieved in-principle approval from SEBI to step into the mutual fund realm. As the final approval from SEBI inches closer in the upcoming months, Unifi Capital Pvt Ltd is gearing up for the launch of its maiden mutual fund scheme.
However, the spotlight is firmly fixed on the much-anticipated collaboration between Jio and BlackRock. BlackRock Asset Managers, recognized as the world’s largest fund house, re-enters the Indian market after parting ways with DSP BlackRock in 2018. The resurgence involves a strategic partnership with Jio Financial Services (JFS), setting the stage for transformative changes in the Indian mutual fund landscape. As stakeholders eagerly await further developments, the Jio-BlackRock Asset Management Co. holds the promise of reshaping the contours of the mutual fund industry in India.