Jio BlackRock could acquire another mutual fund business

The fund house, expected to chart a passive investment course, starts with nearly Rs 2,500 crore in capital. Why does it need so much money for what is essentially a low-cost investment strategy?

For market observers, the coming together of Reliance Industries’s Jio Financial Services Ltd and BlackRock Inc. to set up a 50:50 joint venture in India did not come as a surprise.

What did was the announcement by both partners that they would each commit an initial investment of $150 million. This means a combined initial investment of almost Rs 2,500 crore, which is at least 25x what most fund houses start with. The Morning Context spoke to three mutual fund CEOs and none could put a finger on the reason behind such a large allocation of funds for the asset …


Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

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