Upcoming NFO: JioBlackRock Mutual Fund Files for JioBlackRock Ultra Short-Term Fund

JioBlackRock Mutual Fund has filed a draft Scheme Information Document for the JioBlackRock Ultra Short-Term Fund.  

The proposed open-ended debt scheme will invest in debt and money market instruments, with the objective of generating income and maintaining liquidity. The portfolio will have a Macaulay duration of three to six months.  

The draft classifies the scheme as carrying moderate interest rate risk and moderate credit risk. It also states that the investment objective may not be achieved. 

Investment Allocation and Benchmark 

The scheme can invest up to 100% of its assets in debt and money market instruments. Permitted investments include government securities, treasury bills, commercial paper, certificates of deposit, corporate debt securities, and securitised debt. 

The fund will be actively managed, with investment decisions based on credit quality, liquidity, interest rate outlook, and other risks. Its Tier I benchmark will be the NIFTY Ultra Short Duration Debt Index A-I. 

Minimum Investment and Redemption 

The minimum lump-sum investment will be ₹500, with additional purchases permitted from ₹500. The minimum SIP instalment will also be ₹500, with weekly, monthly and quarterly investment options. Each SIP frequency will require a minimum of six instalments. 

The draft specifies no exit load. Investors will be able to purchase and redeem units on business days at applicable net asset values (NAVs). Redemption proceeds are to be transferred within three business days of the request, except in specified circumstances. 

NFO and Expenses 

The New Fund Offer (NFO) opening and closing dates have not been provided in the draft. The offer price is ₹1,000 per unit, and the scheme is scheduled to reopen within five business days of the allotment date. 

The fund will have Direct and Regular plans, both offering the Growth option. Jio BlackRock Asset Management Private Limited will manage the scheme. The document estimates annual recurring expenses of up to 1.85% of daily net assets. 

Read More: NFO Alert: Sundaram Mutual Fund Launches Select Equity Ex-Top 100 Long Short Fund! 

Conclusion 

The draft outlines the proposed investment limits, minimum investment amounts and redemption terms. The NFO dates remain unspecified in the document, while the scheme's stated duration range is three to six months. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.