Mumbai: Jio BlackRock International AMC (IFSC) Private Limited on Monday launched the JioBlackRock Advantage World Equity Fund (IFSC), offering eligible investors access to global stock markets through GIFT City in Gujarat.
The open-ended fund of funds scheme will primarily invest in the BlackRock Advantage World Equity Fund, a global equity strategy that invests in companies across developed markets, including the United States, Europe and Japan. The fund aims to help investors diversify their portfolios beyond Indian markets and participate in long-term global growth opportunities.
The underlying fund has a track record of more than eight years and uses data analytics, machine learning, market research and risk management tools to identify investment opportunities. It is managed by BlackRock's Systematic Active Equity team, which has more than four decades of experience in systematic investing.
The portfolio has exposure to sectors such as artificial intelligence, semiconductors, biotechnology, energy infrastructure and industrial transformation. According to the portfolio details shared at the launch, the underlying fund has a significant allocation to the US market, which accounts for around 72.4% of its geographic exposure. Japan accounts for 6.9%, followed by the United Kingdom at 3.4%, France at 3.3% and Italy at 2.7%.
The fund's top holdings include Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta Platforms. Information technology accounts for around 33.4% of the portfolio, followed by financials at 16.2%. The underlying portfolio holds around 301 stocks, providing exposure to companies across multiple industries.
Sid Swaminathan, Managing Director and Chief Executive Officer of JioBlackRock Asset Management, said the launch was a step towards expanding Indian investors' access to global investment opportunities. He said global diversification could become an increasingly important part of long-term wealth creation.
The investment strategy combines company fundamentals, market sentiment, macroeconomic themes and sustainability-related factors. It also uses BlackRock's Aladdin investment and risk technology platform to support portfolio construction and risk management.
Investment details
The minimum initial investment in the fund is $5,000, while additional investments can be made with a minimum of $1,000. The fund has no exit load. Its indicative total expense ratio is 0.90% for the direct plan and 1.40% for the regular plan.
The scheme plans to invest 90% to 100% of its assets in units of the underlying BlackRock Advantage World Equity Fund.
The launch adds to JioBlackRock's efforts to expand investment options through GIFT City, India's international financial services hub. The structure provides eligible investors with a route to international markets under applicable regulations.
However, investments in global equities carry market, currency and geopolitical risks. The fund's heavy exposure to US stocks and the technology sector could also affect returns if these markets or sectors underperform. Investors should review the scheme documents, costs and risk factors before investing.
