Mukesh Ambani is disrupting Rs 44.4 Lakh Cr mutual fund sector in Jio way! 🤯
He made Jio Blackrock, a JV (50:50) with world’s largest asset manager, BlackRock with an initial capital of Rs 2380 Cr.
They are set to begin with low-cost passive products.
He made Jio Blackrock, a JV (50:50) with world’s largest asset manager, BlackRock with an initial capital of Rs 2380 Cr.
They are set to begin with low-cost passive products.
JFS (Jio Financial Services) has received Rs 20700 Cr liquid assets from Reliance Services.
Here’s his roadmap:
- Enter B2B credit business.
- Get in consumer lending.
- Break into insurance, payments, digital broking and asset management.
Here’s his roadmap:
- Enter B2B credit business.
- Get in consumer lending.
- Break into insurance, payments, digital broking and asset management.
Though JFS has to face tough tests from 40+ competitors and regulations.
Such as,
- SBI, ICICI, HDFC, Nippon, Kotak Mahindra, ABSL and Axis are top players holding 80% share of this industry.
Such as,
- SBI, ICICI, HDFC, Nippon, Kotak Mahindra, ABSL and Axis are top players holding 80% share of this industry.
- Bajaj Finserv has entered it recently.
- Paytm, PhonePe, Simpl and CRED are there in lending.
- Zerodha is also set to launch mutual funds as it'll get a final signal from SEBI soon.
It’ll build a platform with smallcase.
- Paytm, PhonePe, Simpl and CRED are there in lending.
- Zerodha is also set to launch mutual funds as it'll get a final signal from SEBI soon.
It’ll build a platform with smallcase.
As Rs 5.4 Lakh Cr is invested in ETFs which is 12% of total assets under AUM (Asset Under Management), Ambani has seen AUM of India's MF industry 2X in last 5 years.🇮🇳
Here are 5 strategies Mota Bhai is using to apply his JIO playbook:
Here are 5 strategies Mota Bhai is using to apply his JIO playbook:
1. Noble Mission:
Due to issues in distribution, millions of retail investors can’t buy passive funds.
He's set to remove them and make it seamless.
His target is to democratise investing in India through “Fit for India” movement.
Due to issues in distribution, millions of retail investors can’t buy passive funds.
He's set to remove them and make it seamless.
His target is to democratise investing in India through “Fit for India” movement.
2. Partnership:
Blackrock’s digital platform Aladdin (Asset, Liability, Debt and Derivative Investment Network) fits his plan for India.
Aladdin is used by 200+ global firms.
It’ll leverage tech and data to bring affordable and innovative solutions.
Blackrock’s digital platform Aladdin (Asset, Liability, Debt and Derivative Investment Network) fits his plan for India.
Aladdin is used by 200+ global firms.
It’ll leverage tech and data to bring affordable and innovative solutions.
3. Advantage:
It’s set to leverage its footprint at 18500+ stores of Reliance Retail and 448.5 million subscriber base of Jio.
4. Untapped market:
As India is set to be world's 3rd largest economy in 4 - 7 years, working portion of 1.4 billion population will invest more.
It’s set to leverage its footprint at 18500+ stores of Reliance Retail and 448.5 million subscriber base of Jio.
4. Untapped market:
As India is set to be world's 3rd largest economy in 4 - 7 years, working portion of 1.4 billion population will invest more.
Such as people from Tier-2, Tier-3 cities and beyond are still untapped.
5. Track record:
After demerger, JFS has already 3rd largest NBFC in India with Rs 1.66 Lakh Cr valuation.
In telecom, he’s erased all competitors in only 7 years which he’s copying here.
5. Track record:
After demerger, JFS has already 3rd largest NBFC in India with Rs 1.66 Lakh Cr valuation.
In telecom, he’s erased all competitors in only 7 years which he’s copying here.
On other hand, Blackrock left India in 2018 when its 60:40 JV with DSP group fell apart. It’ll revise its last mistakes.
As ratio of mutual fund AUM to India’s GDP is only 16% compared to world's average of 63%, it’s a huge scope of growth.🚀
As ratio of mutual fund AUM to India’s GDP is only 16% compared to world's average of 63%, it’s a huge scope of growth.🚀
Under Isha Ambani's leadership, it'll be interesting to see growth of JFS.
PS- Despite being listed recently, Ambani fever has already fallen shares of Indian companies.
Can Ambani be successful in disruption again?
Do you think it’ll be easy to repeat JIO strategy this time?
PS- Despite being listed recently, Ambani fever has already fallen shares of Indian companies.
Can Ambani be successful in disruption again?
Do you think it’ll be easy to repeat JIO strategy this time?
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