Jio BlackRock Asset Management, a joint venture between Jio Financial Services and BlackRock, has unveiled its first offering in the specialized investment fund (SIF) category: the Prism Hybrid Long-Short Fund. This launch comes nearly a year after the company introduced its initial domestic market fund in June 2025.
Specialized Investment Funds (SIFs) represent a new asset class established by the Securities and Exchange Exchange Board of India (SEBI) in late 2024, with a framework notified in February 2025. SIFs are designed to bridge the gap between traditional mutual funds and portfolio management services. While subject to similar regulatory oversight as mutual funds, SIFs uniquely allow for derivative positions, a capability not typically available to standard mutual funds. These funds cater to more sophisticated investors, requiring a minimum investment threshold of Rs 10 lakh.
The Prism Hybrid Long-Short Fund seeks to generate long-term capital appreciation and income by strategically investing across equity, debt, derivatives, and various alternative opportunities. Its innovative strategy involves combining traditional long positions with limited short exposure via derivatives, fixed income instruments, and differentiated investment avenues such as merger arbitrage, options-based collars, Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and other special situations.
According to Sid Swaminathan, MD and CEO of Jio BlackRock Asset Management, this hybrid approach is particularly suitable in the current market environment, which has seen lackluster returns and significant volatility over the past 12-18 months due to geopolitical uncertainties. "The key benefit of the hybrid structure is you are able to put together these diversifying sources of returns to create a fund that effectively is getting you close to 9-10-11 per cent returns, but at a much lower level of risk than equities," Swaminathan stated.
The SIF industry has seen strong initial traction, with hybrid long-short funds accounting for over 70% of the total SIF Assets Under Management (AUM). As of May 2026, the net AUM across the SIF sector stood at Rs 13,813 crore, with hybrid long-short funds alone contributing Rs 9,709 crore.
Beyond its SIF debut, Jio BlackRock is also expanding its broader operational footprint. Having initially offered mutual funds through a direct channel, the firm is now tapping into a wider distribution network to support its growing array of offerings. Furthermore, the company is preparing to launch operations in GIFT City, Gujarat, within the coming months, having secured all necessary approvals. Through its GIFT City entity, Jio BlackRock plans to offer both inbound and outbound investment funds, providing global exposure to domestic investors and India-focused funds to overseas investors.