You may have heard that Jio and BlackRock are set to launch a joint mutual fund. But what can these two achieve in this mutual fund category?
Key Highlights:
- Investing in international funds will become very easy: They may have their fund, which includes many companies internationally in which you can easily invest, and you can also take advantage of international investment.
- They will use global investing strategies: Look, Black Rock has come along. They have their own Aladdin software. They will utilise global investing strategies, which can help increase your profits.
- All their mutual funds will be direct: So you will not have to pay any commission in between.
- No lock-in period and a zero expense ratio at the outset: Their mutual funds may not have a lock-in period, and initially, you may not incur any expense ratio.
What is Aladdin?
So, you haven’t heard of Aladdin yet. I’m talking about BlackRock’s AI software, Aladdin.
This software is so intelligent that if I manage a portfolio of Rs 10,000 crore. And I am afraid that if the interest rate in the USA increases by even 1%, what will happen to my portfolio?
So Aladdin will scan thousands of stocks, mutual funds and commodities in my portfolio and tell me in a few seconds that there will be a loss of Rs 423 crore in my portfolio.
Now that the loss has been explained, it will also perform automatic rebalancing with just one button press. That means it will sell those loss-making stocks and buy those that can generate a profit. And overall, instead of the loss which I was going to incur earlier, I will make a profit.
How Advanced is Aladdin?
This is the most exclusive software of BlackRock, and the information is such that its annual subscription is 15 to 20 crores.
In this software, data on every news item and market information is fed and analysed within a few milliseconds.
This means that even before the information arrives, it will analyse it and predict its impact on the market.
And even some people say that Aladdin, like Doctor Strange, predicts the news many times in advance by doing millions of calculations.
Additionally, it also employs psychological principles.
Aladdin’s Psychological Edge
Many times, as soon as the US Fed Chairman arrives and says ‘good morning,’ the market suddenly falls and then rises.
Currently, he hasn’t even disclosed the interest rate to us. But the way he said good morning. What colour clothes is he wearing? How did you shake your hand before that? What are their facial reactions?
After performing all this and conducting millions of calculations, Aladdin predicts in advance what will happen to the interest rates.
That is why you may have noticed that the stock market often fluctuates even before news is released.
You can imagine how intelligent the Aladdin software from Black Rock is.
History and Usage of Aladdin
This software is not a recent launch. This is more than 25 years old as of today.
Even has been using Microsoft-based software since 2002 to manage its $120 billion in assets.
In 2008, when the financial crisis hit and the US government faced a huge burden due to it, they also utilised this software to manage their debt.
So this software was so advanced even 17 years ago.
Today, it has become so advanced that its developers say that its back-end architecture is more complex than NASA’s Mission Control.
This is the reason that today, more than Rs 21 trillion of the world’s assets are managed with the help of the Aladdin software by BlackRock.
Why This Matters for India
Now, why am I telling you so much about this Aladdin software?
I am telling you this because the software is now also coming to India, thanks to the partnership between Jio and Black Rock.
Jio itself has announced this.
This means that the Jio Black Rock mutual fund will utilise Aladdin AI, which may give other mutual funds a run for their money.
Apart from this, some of Aladdin’s features may be integrated into the Jio BlackRock platform, through which you can invest in mutual funds and manage your portfolio yourself.
Not Just Aladdin: What Else is Coming?
However, BlackRock, a company that manages funds many times greater than India’s GDP, is coming to India in collaboration with Jio. In that case, it is not based solely on Aladdin’s strength.
He is also going to do something unique that you probably wouldn’t have even thought of.
Jio BlackRock Overnight Fund
Recently, Jio Black Rock launched its first product, which is the Jio Black Rock Overnight Fund.
This is an open-ended day scheme in which investments are made in overnight securities.
Its maturity period is only one day. That means if you want to invest in mutual funds, even for the ultra short term, you can do it.
The special thing is that since it is a day fund, the risk associated with it is also very low.
If you have some extra money lying around and want to earn profit by investing it in a mutual fund for the ultra-short-term, you can do it through this fund.
Moreover, this fund does not have an exit load.
This means that even if you sell it shortly after purchasing, you will not incur any additional charges.
That means you can sell it whenever you want.
The money will be transferred to your account within 3 days; if there is any delay, the company will also pay you interest at a rate of 15% per annum.
Strategic Direction
Overnight funds are already available in the market. But if Jio Black Rock has launched its first fundy overnight fund, then from here, you can understand in which direction it is going.
By the way, I’d like to inform you that the Jio Black Rock AMC website has been launched.
Early access has also been initiated.
Sid Swaminathan, with over 20 years of experience, has been appointed as the CEO of the company, and approval from SEBI was received long ago.
So, in a very short time, you may see their NFO.
Final Thoughts
Jio and BlackRock partnership has great potential to reshape the working flow of investing in India. The cutting-edge technology, combined with global investment experience and a strong partnership with Jio,
allow every regular investor to use high-end financial tools.
No matter if you’re new to mutual funds or a seasoned investor, this partnership could bring better transparency, lower costs, and smarter portfolio management tools right to your fingertips.
It’s worth keeping an eye on how Jio BlackRock evolves in the upcoming days. Because sooner or later, this could mark the beginning of something significant in the Indian financial landscape.