Jio BlackRock International AMC (IFSC) has launched an open-ended fund of funds scheme that will invest predominantly in BlackRock’s Advantage World Equity Fund, offering eligible investors access to developed-market equities through GIFT City.
The JioBlackRock Advantage World Equity Fund (IFSC), launched on October 26, will invest 90%-100% of its assets in units of the underlying BlackRock fund, according to the company’s announcement.
The scheme is registered under the International Financial Services Centres Authority’s (IFSCA) fund management regulations.
The minimum initial investment is $5,000, while additional investments must be at least $1,000. The scheme has no exit load, and its indicative total expense ratio is 0.90% for the direct plan and 1.40% for the regular plan.
The fund follows a feeder structure, meaning investors gain exposure to the underlying global equity portfolio rather than a separately constructed portfolio of international stocks managed directly by the Indian entity.
The underlying fund invests across developed markets, including the US, Europe and Japan, with a significant allocation to US equities, the company said. Its investment strategy combines company fundamentals, market sentiment, macroeconomic themes and sustainability-related factors, supported by quantitative research, data analytics and machine-learning tools.
The strategy is managed by BlackRock’s Systematic Active Equity team. According to the company, the underlying fund has a track record of more than eight years.
The portfolio’s investment universe includes sectors and themes such as artificial intelligence, semiconductors, industrial transformation, energy infrastructure and biotechnology. However, the scheme’s exposure to individual sectors and stocks can change, and the themes listed by the company do not guarantee specific allocations.
Why the GIFT City route matters
The launch adds another route for eligible investors seeking international equity exposure through India’s International Financial Services Centre (IFSC) at GIFT City, Gujarat.
Investing overseas can help diversify a portfolio beyond domestic markets, but returns remain subject to global equity-market movements, currency fluctuations and country- and sector-specific risks. International exposure also does not necessarily reduce portfolio volatility, particularly when global markets decline together.
The GIFT City structure operates under the IFSC regulatory framework and differs from investing in overseas funds through conventional domestic investment platforms. Investors should check the scheme’s eligibility requirements, applicable investment and remittance rules, tax treatment and documentation before investing.
The fund’s stated expense ratios are indicative and should be checked against the final scheme documents. Investors should also review the underlying fund’s charges, the feeder scheme’s expenses and the combined cost of accessing the investment.
Sid Swaminathan, managing director and chief executive officer of JioBlackRock Asset Management, said the launch was part of the company’s plans to expand access to international investment opportunities through GIFT City.
Jio BlackRock International AMC (IFSC) is a wholly owned subsidiary of JioBlackRock Asset Management. The latter is a joint venture between Jio Financial Services and BlackRock.
As with other equity-oriented investments, the scheme carries market risk, and there is no assurance that it will meet its investment objective or deliver positive returns.
(Note: Disclaimer: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.)
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.