SIPs for first-timers, lumpsums for veterans in JioBlackRock Flexi Cap Fund: Rishi Kohli

Amid current economic indicators and shifting geopolitical dynamics, Rishi Kohli, CIO of JioBlackRock Mutual Fund, recommends that first time investors may go for SIPs in the JioBlackRock Flexi Cap Fund whereas seasoned investors who understand the market cycles better may go for lumpsum investment in the fund.

The CIO in an exclusive webinar said that, ““Based on current signals and geopolitical scenarios, new investors can begin with SIPs, while seasoned investors can consider lump sums – since our aim is to manage risk and volatility while targeting alpha.” – Rishi Kohli, CIO JioBlackRock Asset Management Private Limited.”

Also Read | How JioBlackRock Mutual Fund is using AI to generate alpha in its new flexicap fundThe JioBlackRock Flexi Cap Fund is now open for subscription and will close on October 7. The fund will reopen for continuous sale and repurchase within five business days of allotment date.

According to Rishi Kohli, this is India’s first active equity fund powered by Systematic Active Equity (SAE) and this SAE approach helps the fund house decide which news, article, or signal to pick and link to investments – aiming at investors’ benefit.

He further highlighted that the fund doesn’t just focus on alpha but the risk and cost are also built into the process.““Our traditional plus alternative data approach helps us react faster. Aladdin, Blackrock’s end-to-end integrated platform, supports us in managing the fund at scale, with cost efficiencies,” Kohli said in the webinar.

The flexi cap fund is following an active investment strategy which adopts a systematic approach to stock selection and portfolio construction. The approach allows the fund managers to respond proactively to changing market conditions and emerging opportunities.

The investible universe of the scheme is defined by the fund managers based on inputs from the investment team to limit investments into stocks of issuers based on their track record pertaining to governance, debt servicing, regulatory compliance or market perceptions and such other parameters.

The portfolio construction process is powered by BlackRock’s technology platform – Aladdin, which has been licensed to JioBlackRock AMC. This process is augmented by an optimization process which leverages the composite research score along with other inputs from the investment team such as risk constraints, transaction cost, market liquidity, sector constraints and such other inputs.

JioBlackRock Flexi Cap Fund is an open-ended dynamic equity scheme investing across large cap, mid cap, small cap stocks. The investment objective of the Scheme is to generate long term capital appreciation by investing in equity and equity related instruments across market capitalization.

Also Read | Jio BlackRock Mutual Fund launches first active equity fund. Should you invest?

This flexi cap fund from JioBlackRock Mutual Fund will allocate 65-100% in equity and equity-related instruments of large cap, mid cap and small cap companies, 0-35% in debt and money market instruments, and 0-10% in units of REITS and InvITs.

The fund will be benchmarked against Nifty 500 Index (TRI) and will be managed by Tanvi Kacheria and Sahil Chaudhary. Maximum Total expenses ratio (TER) permissible under Regulation 52 (6) (c) is upto 2.25%, according to the scheme information document (SID).