MUMBAI: Jio Financial Services Ltd, a subsidiary of Reliance Industries Ltd spearheaded by Mukesh Ambani, has recently obtained in-principle approval from the Securities and Exchange Board of India (SEBI) to establish a mutual fund business in collaboration with BlackRock Financial Management, the world’s largest asset management firm managing over $10 trillion in assets.
The strategic partnership embodies a significant step towards the democratisation of asset management in India, where Jio Financial Services aims to transform the landscape by encouraging a culture of investment among the populace.
According to Jio Financial Services’ regulatory filing, the approval, dated October 3, 2024, allows the company and BlackRock to act as co-sponsors in the proposed mutual fund venture, pending final registration and satisfaction of specific regulatory requirements.
This development follows the demerger of Jio Financial Services from Reliance Industries in July 2023, which was swiftly followed by the announcement of a 50:50 joint venture with BlackRock aimed at launching asset management services in the Indian market.
Fostering wealth creation
A subsequent agreement to establish a wealth management and broking business was formalised in April, further solidifying their collaborative effort.
Rachel Lord, head of international for BlackRock, articulated the shared vision of the partnership: to facilitate India’s transition from a nation of savers to investors. The initiative is particularly relevant in a country where investment can significantly enhance individuals’ abilities to achieve financial goals and foster wealth creation at a faster pace.
By leveraging a digital-first approach, the joint venture seeks to make mutual funds more accessible and appealing to a broader demographic, thereby tapping into the expansive Rs50 trillion mutual fund industry.
Financially, Jio Financial Services is experiencing robust growth. The company recorded a substantial increase in its consolidated net profit, escalating from Rs31 crore in the previous fiscal year to an impressive Rs1,605 crore in FY24. Revenue figures have also shown slight improvements, illustrating the company’s strengthening position in the market.
