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| Reliance Industries, at its Annual General Meeting (AGM) on Monday (August 28), announced a joint venture with BlackRock, the world's largest asset management company, to revolutionise India's asset management landscape. |
This strategic partnership, known as Jio BlackRock, aims to provide accessible and innovative investment solutions, underpinned by cutting-edge technology.
Mukesh Ambani, Chairman, and CEO of Reliance Industries, expressed his excitement about this collaboration, emphasising the shared commitment to creating better financial futures. The venture marks a significant milestone in both companies' missions to make investing easier and more affordable for millions of people.
Larry Fink, Chairman and CEO of BlackRock, expressed his excitement for the partnership and highlighted India's role in the global landscape. BlackRock has had a growing presence in India over the past 15 years and recognises the country's potential as a hub of digital transformation and innovation.
He noted India's changing financial landscape, with increasing affluence, favourable demographics, and a shift towards saving and investing, all supported by digital transformation.
The joint venture combines the strengths of both entities: Jio Financial Services' digital infrastructure capabilities and local market knowledge, and BlackRock's global investment and risk management expertise. Together, they plan to introduce a digital-first, tech-enabled asset manager, democratising access to transparent and affordable investment products for every segment of society.
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The partnership between Reliance Industries and BlackRock signifies their unwavering commitment to India's growth and promise. As India continues to evolve as a digital powerhouse, Jio BlackRock aims to lead the transformation of the asset management industry, offering a comprehensive range of investment solutions that cater to the unique needs of the Indian market.
Jio Financial Services Ltd in July, announced a significant move to enter the asset management business in India through a 50:50 joint venture. This venture involved a substantial investment of $150 million from each partner.
For context, as of July 2023, the Average Assets Under Management (AAUM) for the Indian Mutual Fund Industry amounted to Rs 46,27,687 crore. Additionally, the total Assets Under Management (AUM) for the industry on July 31, 2023, was Rs 46,37,565 crore. These figures suggest that the asset management industry in India is quite substantial and likely attractive for new entrants.
Moreover, it's noteworthy that the total number of accounts, often referred to as "folios" in mutual fund terminology, as of July 31, 2023, reached 15.14 crore or 151.4 million. Among these, approximately 12.08 crore or 120.8 million folios were under equity, hybrid, and solution oriented schemes, which typically involve significant retail segment investments.
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