JioBlackRock Launches AI-Powered Sector Rotation Fund for Dynamic Investing

The fund seeks to identify investment opportunities by dynamically rotating exposure among various sectors through the leveraging of BlackRock's SAE methodology. This launch marks the latest product from the 50:50 joint venture between Jio Financial Services Limited and BlackRock Inc.

According to a media release, the JioBlackRock Sector Rotation Fund is designed to complement core equity allocations by focusing on harnessing sector alpha rather than stock alpha. This strategy offers investors an additional lever to navigate changing market cycles.

While traditional flexicap funds focus on bottom-up stock selection across market capitalisations, this fund systematically adjusts sector exposures as economic and market conditions evolve. The New Fund Offer (NFO) is scheduled to commence on Tuesday, January 27, 2026, and will close on Monday, February 9, 2026.

The investment framework utilises quantitative data and AI-driven analysis to evaluate sector opportunities within the Indian equity market. By applying advanced technology, the fund aims to transform traditional and alternative data, ranging from social media conversations to job data, into investable insights.

This systematic approach reduces reliance on subjective judgement and enables repeatable investment decisions based on market, macro, and earnings signals. Unlike traditional sector funds that often rely on concentrated calls, this fund follows a risk-controlled, benchmark-aware approach seeking to outperform the Nifty 500 Index.

Rishi Kohli, Chief Investment Officer, JioBlackRock Asset Management, said, "Over the last decade, sector leadership has kept changing, often in ways that are hard to anticipate. With constant shifts in consumption, technological disruption, geo-politics as well as global supply chains, The JioBlackRock Sector Rotation Fund will allow investors to participate in these changes by dynamically changing sector weightages in the portfolio as leadership moves from one sector to another."

The portfolio is constructed to remain broadly diversified across sectors and market capitalisations to avoid over-dependence on any single theme or cycle. This diversification is intended to enhance portfolio resilience and allow the fund to participate dynamically in shifting sector leadership over time.

The investment objective of the scheme is to generate long-term capital appreciation by investing in equity and equity-related instruments following the sector rotation theme, though there is no assurance that this objective will be achieved.

"The Sector Rotation Fund will also be available across major digital finance platforms in India, Groww, Zerodha (Coin), Paytm Money, Dhan, and IND Money, along with other SEBI Registered Investment Advisors (RIAs)," the release said.

- ANI