Jio BlackRock AMC keeps debt exposure short, eyes selective equity bets amid volatile markets

Jio BlackRock Asset Management Company is maintaining a cautious stance on fixed income while selectively expanding its equity and thematic offerings, as volatility in interest rates, shifting global cues, and uneven sectoral performance shape investor behaviour.

Speaking on the fund house’s positioning, Rishi Kohli, Chief Investment Officer at Jio BlackRock AMC, said the current debt portfolio remains concentrated at the shortest end of the maturity curve.

The AMC currently runs overnight, liquid and money market funds, with most exposures in AAA-rated instruments, limiting both interest rate and credit risks.

This conservative positioning has helped the funds navigate recent tightness in the bond market, where yields have risen despite policy rate cuts.

Kohli said the AMC has received regulatory approval to launch low-duration and short-duration debt funds, which will allow it to take measured duration exposure of up to three years over the coming months.

On the equity side, Jio BlackRock AMC operates a mix of passive and active strategies. Its offerings include four index funds and one actively managed flexi-cap fund. The index funds cater to investors seeking low-cost exposure across market capitalisations, while the flexi-cap fund follows a systematic, data-driven investment process.

Kohli said the flexi-cap strategy focuses on risk and cost efficiency and adjusts portfolios dynamically across market conditions. He added that the AMC’s near-term equity outlook remains moderately positive, prompting a phased approach to equity allocation over the next few months.

The AMC has also introduced an arbitrage fund, positioning it as a liquidity management option in uncertain markets.

According to Kohli, arbitrage strategies offer relatively steady returns with high liquidity and tax efficiency, making them suitable for investors looking to temporarily park funds before gradually reallocating to equity.

Investor flows, however, continue to reflect shifting risk preferences.

Kohli noted that allocations into mid-cap and small-cap funds remained strong until recently, even as performance trends over the past year have favoured large-cap stocks. He expects large-cap outperformance to persist over the next six to twelve months, broadly in line with anticipated earnings growth.

Still, he cautioned that retail investor flows often follow short-term performance patterns, which could influence allocations across market-cap segments.

On monetary policy, Kohli said the current low-rate environment has increased the relative appeal of arbitrage strategies compared to traditional liquid funds, particularly on a post-tax basis. He added that opportunities exist across the yield curve, but active fixed-income management now requires nimble, tactical positioning rather than long-duration bets.

Meanwhile, Jio BlackRock AMC is expanding its thematic footprint with the launch of a Sector Rotation Fund, following regulatory approval. Kohli said the fund aims to capture recurring shifts in sector leadership across different market phases, a trend that has remained evident even when broader indices delivered muted returns.

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