JioBlackRock MF Adopts Systematic Active Equity Approach for India’s Growing Equity Market
JioBlackRock Mutual Fund is introducing its Systematic Active Equity (SAE) strategy in India through its Flexi Cap Fund, combining data analytics, AI, and human expertise. This approach uses both traditional and alternative data, including real-time signals like credit card swipes and job postings, to manage diversified equity portfolios and mitigate human biases, aiming for consistent risk-adjusted returns across large, mid, and small caps.
As India’s equity market becomes more complex, JioBlackRock Mutual Fund is deploying its Systematic Active Equity (SAE) strategy—marking the first use of BlackRock’s global SAE approach in India via the Flexi Cap Fund. This method integrates big data, AI, and human expertise via the Aladdin platform, using both fundamental and alternative data sources (about 20% alternative data such as credit card swipes, online transactions, and job postings) to generate real-time insights into business trends. By constructing portfolios with small, diversified exposures across numerous stocks rather than concentrated bets, the approach reduces concentration risk and aims for stable, resilient returns. SAE also mitigates fund manager biases by relying on data-driven signals and technology, ensuring continuity even if fund managers change. The strategy benchmarks against the NSE 500 Index and allows investments across all market capitalizations, seeking consistent risk-adjusted alpha. The fund can be accessed via SIPs, clarifying that SAE refers to portfolio management methodology rather than the investor’s payment method. Overall, this represents a systematic, disciplined evolution in Indian equity investing that leverages global expertise, data science, and AI to navigate a larger and more complex market.
