Jio BlackRock Mutual Fund has introduced a new mutual fund scheme designed for low-risk stock market investments. The scheme is called the Jio BlackRock Arbitrage Fund,
and subscriptions will open on December 9, 2025. According to the company, this fund aims to generate stable returns by using small price differences in the market.
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What Are Arbitrage Funds?
In the stock market, the price of a single stock can vary between the cash (spot) market and the futures market. Arbitrage fund managers earn profits by capturing this price difference. Since this gap is usually small and predictable, the risk remains very low.
The Jio BlackRock Arbitrage Fund will follow this same model. If required, the fund may also invest a portion of its money in debt and money market instruments.
NFO Investment Strategy
The fund will invest:
65% to 100% in equities and equity derivatives
0% to 35% in debt and money market instruments
The company says fund managers may use eight different strategies, such as cash–futures arbitrage, calendar spreads, index arbitrage, merger arbitrage, and hedging.
According to Jio BlackRock, arbitrage opportunities increase when the market becomes more volatile. The actual expense ratio will be announced after launch, but the fund house has shared an indicative expense ratio of 0.30%.
Use of Advanced Investment Techniques
Jio BlackRock will use its technology platform Aladdin, which provides real-time risk management and data-based investment decisions. This helps in managing portfolios more safely and systematically.
The fund will be managed by a team of experienced professionals: Anand Shah, Haresh Mehta, Siddharth Deb, and Arun Ramachandran. The benchmark index for the scheme will be the Nifty 50 Arbitrage (TRI).
If the market does not offer good arbitrage opportunities at any point, the fund may temporarily move its investments to debt and money markets to maintain stable and low-risk returns.
Who Should Consider This Fund?
Arbitrage funds are considered suitable for short-term investments with minimal risk. This Jio BlackRock scheme is marked as “Low Risk.”
It may be a good option for investors looking to invest their extra funds for 3 to 12 months. This scheme is also tax-efficient, as it follows the tax rules applicable to equity funds.
Important NFO Details
NFO Opening Date: December 09, 2025
NFO Closing Date: December 11, 2025
Risk Level: Low Risk
Exit Load: 0.25% if redeemed within 15 days; No charge after 15 days
Minimum Investment (Lumpsum): Rs 500
Minimum SIP: Rs 500
Benchmark: Nifty 50 Arbitrage (TRI)