Jio BlackRock, the joint venture between Reliance Industries’ Jio Financial Services and global investment giant BlackRock, is making a major change in its business strategy.
Within a year of launch, the company is moving away from its direct-only model and opening its products to distributors and intermediaries.
This marks a significant shift in how the company plans to reach investors in India.
From Direct Plans to Wider Distribution Network
Until now, Jio BlackRock sold its mutual fund products only through direct plans. But the company has now decided to expand its reach by partnering with distributors.
According to Sid Swaminathan, Managing Director and CEO of Jio BlackRock, the company will first introduce distributors for its upcoming Specialized Investment Fund (SIF).
After that, other mutual fund schemes will also be made available through the same distribution network.
Swaminathan explained that India has a very diverse investor base. Many investors still depend on financial advisors or experts to help them make investment decisions. This makes distributor support important for growth.
Strong Growth from the Direct Model
The company has also rejected claims that it shifted strategy due to weak performance in assets under management (AUM). According to Swaminathan, Jio BlackRock already has around 1.1 million investors.
Out of these, nearly 20% are first-time investors, showing strong early interest. The company’s total AUM has reached around ₹15,000 crore, including ₹4,000 crore from retail investors.
Interestingly, about 40% of retail investments are coming from smaller cities (B30 markets).
This shows that the direct model has already performed well in a short time.
Why Distributors Matter in India’s Market
In India’s mutual fund industry, direct plans are cheaper because they do not include distributor commissions. However, many investors still prefer regular plans offered through banks and financial advisors.
So far, Jio BlackRock’s direct-only approach limited its access to these large distribution networks.
By now working with intermediaries, the company will be able to reach a much wider audience, especially investors who prefer guided investment advice.
This move is expected to significantly expand its presence in the Indian mutual fund market.
