NFO Pick – (JioBlackRock Flexi Cap Fund NFO)

8 Sep 2025 , 12:50 PM

HOW JIOBLACKROCK WILL ADD VALUE TO FLEXI CAP FUND

JioBlackRock Flexi Cap Fund plans a rather unique approach to managing the flexi cap fund through a mix of human and machine intervention. Here are some highlights.

• The fund seeks to combine the financial service local intelligence of the Jio Financial group and the global fund management best practices of Blackrock. Globally, Blackrock manages $12.5 Trillion AUM.
• The fund will adopt the systematic active equity (SAE) approach combining human and machine abilities. Traditional screening and analysis parameters will be fine-tuned with the use of artificial intelligence (AI) and machine learning (ML).
• The SAE approach of the fund combines multiple data points with social media and macro interfaces to convert such data points into actionable insights. A greater breadth of insights means more granular portfolio decisions.
• Greater use of machine-based intelligent processing ensures that the portfolio model becomes scalable even while factoring multiple variables in the decision-making process. This makes the output more refined, and improves chances of success.
• One of the big risks in traditional portfolio decision making is the reliance on confirmation bias and vulnerability to peer pressure. A data / machine-based approach largely reduces the subjectivity in the decision-making process.
• Finally, we come to costs. A scalable machine-based model ensures to keep costs low, especially as the AUM expands. This allows the fund to keep the TER at a competitive level, as is evident in the 0.5% indicative TER for this fund.

In short you get a diversified portfolio, where the risks of portfolio shifts are well-managed; leaving them more to a rule-based approach and less to individual discretion.

HOW FLEXI CAP FUNDS HAVE PERFORMED IN INDIA

Flexi Cap funds in India manage ₹4,97,281 Crore AUM across 41 funds. For our ranking, we have only considered 24 funds with 5-year track record. Here are the top-10 flexi cap funds in India based on 5-year CAGR returns (Direct Plans).

Scheme Name	1-Year (%) Returns	3-Year (%) Returns	5-Year (%) Returns	Daily AUM (₹ in Crore)
HDFC Flexi Cap Fund	5.30	22.97	28.70	83,138.45
Quant Flexi Cap Fund	-13.43	17.18	27.85	6,806.11
Bank of India Flexi Cap Fund	-6.42	22.13	27.04	2,141.79
JM Flexi Cap Fund	-9.09	23.20	26.41	6,041.67
Franklin India Flexi Cap Fund	-2.19	19.05	24.54	18,977.64
Edelweiss Flexi Cap Fund	-1.70	19.55	23.63	2,828.04
Parag Parikh Flexi Cap Fund	7.28	21.75	23.50	1,17,553.53
HSBC Flexi Cap Fund	-1.57	19.99	22.50	5,060.83
PGIM India Flexi Cap Fund	1.59	14.29	21.11	6,320.98
DSP Flexi Cap Fund	-2.76	17.40	21.01	11,848.97

Data Source: AMFI

The 24 funds with a 5-year track record have generated average 1-year return of -1.74%, 3-year CAGR returns of 17.24%, and 5-year CAGR returns of 21.34%. The 5-year return may look inflated due to the COVID base. While the return dispersion is low over a 5-year basis, the dispersion tends to increase over a 3-year period and 1-year period.

GLANCE AT JIOBLACKROCK FLEXI CAP FUND NFO

Here are key details of the JioBlackRock Flexi Cap Fund NFO.

• NFO opens on September 23, 2025 and closes on October 07, 2025. This open-ended Fund will invest across large caps, mid-caps, and small caps in discretionary proportions.
• On the risk-o-meter, JioBlackRock Flexi Cap Fund is classified as “High Risk,” due to its substantial exposure to equity. Also, there is the risk of dynamic allocation decisions.
• The JioBlackRock Flexi Cap Fund NFO is best suited to investors looking at long term returns, through a flexible approach, and combining human and machine strengths.
• The benchmark for the fund will be the Nifty 500 Index TRI. Tanvi Kacheria and Sahil Chaudhary will manage the asset allocation and portfolio shift decisions.
• Minimum application amount in NFO is ₹500 and the fund structure will be compatible with SIP, STP, and SWP too.
• There will be an no exit load. The total expense ratio (TER) is targeted to be kept around 0.50%, one of the lowest for a discretionary allocation equity fund.

JioBlackRock Flexi Cap Fund will be classified as an equity fund for tax purposes. Short term capital gains (STCG) will be taxed at 20.8% (including cess). Long term capital gains (LTCG) will be taxed at 15%, after a base tax-free LTCG limit of ₹1.25 Lakhs per fiscal year.