India’s mutual fund sector heats up: Jio-BlackRock venture cleared, Sanlam buys stake in Shriram AMC

The Securities and Exchange Board of India (SEBI) has granted final regulatory approval for the Jio BlackRock mutual fund venture.

In a letter dated May 26, 2025, SEBI issued a certificate of registration to "Jio BlackRock Mutual Fund" and authorised Jio BlackRock Asset Management Private Limited to act as its asset management company.

The move follows an in-principle approval granted in October 2024 and builds on the joint venture announced in July 2023, which aims to bring a digital-first approach to asset management in India. Both partners have committed initial investments and have since incorporated supporting entities, including Jio BlackRock Trustee Private Limited.

In July 2023, Jio Financial Services (the financial arm of Reliance Industries) partnered with BlackRock, one of the world’s biggest asset managers, to launch a new company focused on mutual funds in India. They created a 50:50 joint venture, meaning both companies own equal parts of the business. Each company agreed to invest $150 million (about Rs 1,200 crore) into this new venture.

In addition to mutual funds, the companies are also expanding into wealth management and broking services. In January 2025, they formed Jio BlackRock Broking Pvt Ltd, which will offer share trading and related services, once approved by regulators.

In January 2025, both Jio and BlackRock invested more money into the joint venture—a total of Rs 175 crore. Each company received 5.85 crore shares in return, keeping their 50:50 ownership structure.

Jio Financial Services, demerged from Reliance Industries Ltd. in 2023, continues to expand its footprint in financial services through the BlackRock partnership, with offerings across mutual funds, wealth management, and brokerage services.

Meanwhile, South Africa’s largest asset manager, Sanlam, has acquired a 23% stake in Shriram Asset Management Company (Shriram AMC), becoming a co-promoter of India’s first listed asset management company. The investment marks Sanlam’s formal entry into India’s mutual fund industry and deepens its two-decade partnership with the Shriram Group.

The Rs 105 crore deal involved a preferential allotment of 38.89 lakh equity shares to Sanlam Emerging Markets (Mauritius), along with mandatory open offers. As a result, promoter shareholding in Shriram AMC has risen from 62.55% to 71.17%. The AMC’s board will be reconstituted to include representatives from Sanlam.

Sanlam, which manages about $80 billion in assets globally, said the move aligns with its long-term commitment to emerging markets. “Our partnership with Shriram AMC reflects our commitment to co-creating investment excellence, particularly in emerging markets,” said Carl Roothman, CEO of Sanlam Investments. “This partnership builds on a long-standing legacy of trust, and a mutual vision to create impactful investments that benefit society.”

The latest infusion follows a 2022 investment by Mission1 Investments LLC, which also holds a 23% stake in Shriram AMC. “We could not be more excited to have someone like Sanlam join in not just as an investor but also as a co-promoter,” said Gaurav Patankar, Managing Partner & CIO at Mission1 Investments. “The opportunity landscape in asset management is as interesting if not more than it was in 2022 when we made our initial investment.”

Shriram AMC said the funds will be used to strengthen its ‘quantamental’ investing approach, drive product innovation, and attract top industry talent as it builds a future-ready asset management platform.