JioBlackRock Mutual Fund has launched its first active equity fund, which is a flexi cap fund. The JioBlackRock Flexi Cap Fund is now open for subscription and will close on October 7.
The fund will reopen for continuous sale and repurchase within five business days of the allotment date.
The investible universe of the scheme is defined by the fund managers based on inputs from the investment team to limit investments into stocks of issuers based on their track record regarding governance, debt servicing, regulatory compliance, market perceptions, or other relevant parameters.
This systematic approach involves utilizing inputs from the fund managers and signal research scores shared by BlackRock Inc. These signal research scores are derived using big data (including traditional and alternative data) and leverage machine learning, a form of artificial intelligence, along with advanced data analytics that are constantly being improved. Signals are selected based on their economic rationale and demonstrated statistical relevance.
The signals are consolidated into a composite research score, which is used in the portfolio construction process alongside other inputs from the investment team.
According to a post by JioBlackRock Mutual Fund on social media platform X:
“By blending human expertise with AI, we aim to build smarter portfolios. JioBlackRock Flexi Cap Fund, powered by Systematic Active Equity (SAE)*, combines the insight of fund managers with data-driven signals to create a portfolio aiming for long- term growth. Investing, evolved.”
“This Systematic Active Equity is a technology-driven investment approach that combines human expertise with a data-driven model to build a portfolio,” it further added.
The portfolio construction process is powered by BlackRock’s technology platform, Aladdin, which has been licensed to JioBlackRock AMC. This process is augmented by an optimization system that leverages the composite research score along with other inputs from the investment team, such as risk constraints, transaction costs, market liquidity, sector constraints, and other relevant factors.
Another post by the fund house on X stated that technology, the explosion of data, and artificial intelligence (AI) are shaping the investment strategies of the future. The digitization of the global economy offers valuable data sets and advanced techniques that enable processing into novel investment insights.
“Systematic investing combines human knowledge, experience, and creativity with the efficiency of machines. This unique blend of technology and human expertise can help overcome behavioral biases and allows systematic investing approaches to generate new insights and create investment models that can learn and improve,” the fund house said.