BlackRock Gets Regulatory Nod to Start Mutual Fund Business in India

BlackRock Inc. BLK and India-based Jio Financial have obtained approval from the Securities and Exchange Board of India to commence operations of their mutual fund business.

The joint venture (JV), Jio BlackRock Asset Management, plans to launch a broad range of investment products in the upcoming quarters based on a “digital first” approach for retail and institutional investors.

These products will apply BLK’s capabilities in data-driven investing, including “Aladdin.” Sid Swaminathan has been appointed as the managing director and chief executive at Jio BlackRock.

BLK & Jio Financial’s JV History

In July 2023, BlackRock entered into a joint venture with Jio Financial, naming it Jio BlackRock, to revolutionize India's asset management industry. This 50:50 partnership combined the scale and investment expertise of BLK with the local market knowledge and digital infrastructure capabilities of Jio Financial.

The joint venture targeted an initial investment of $150 million each from BlackRock and Jio Financial. The primary goal is to democratize access to investment solutions and provide affordable, tech-enabled options for millions of investors in India.

In April 2024, both entities entered into a new joint venture to establish a wealth management and broking business in India to tap into the country’s growing wealth business and rising retail investor base.

BlackRock’s Rationale Behind This Move

This move aligns with BlackRock’s growth strategy to strengthen its market share in domestic as well as global markets. The convergence of rising affluence, favorable demographics and digital transformation in India has created an incredible opportunity. Jio BlackRock aims to capitalize on this potential and reshape the investment landscape.

In March 2025, BlackRock acquired London-based Preqin for $3.2 billion to enhance its private markets offerings. In December 2024, the company announced a deal to acquire HPS Investment for $12.1 billion. In October 2024, it acquired Global Infrastructure Partners to enhance its infrastructural offerings and origination capabilities. In May 2024, BlackRock completed the acquisition of the remaining 75% stake in SpiderRock to boost its separately managed accounts offerings.

Moreover, BlackRock has established strategic alliances. Last September, it entered into a collaboration with Banco Santander to expand into infrastructure markets. Similarly, the company formed a partnership with Partners Group to introduce a multi-private markets model solution, boosting retail investors’ accessibility to alternative investments.

BLK’s Price Performance & Zacks Rank

Shares of BlackRock have gained 1.5% against the industry’s decline of 6.4% in the past three months.

Currently, BLK carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expansionary Moves by Other Finance Firms

Last week, The PNC Financial Services Group, Inc.’s PNC subsidiary, PNC Bank, agreed to acquire Aqueduct Capital Group. The acquisition is expected to close in mid-summer, subject to customary closing conditions. The terms of the deal were kept under wraps.

The planned acquisition will enhance the primary fund placement capabilities of PNC Financial’s subsidiary Harris Williams, which is a global investment bank specializing in mergers and acquisitions and private capital advisory services, serving clients globally.

Similarly, Capital One COF completed the acquisition of Discover Financial. The $35-billion transaction reshapes the landscape of the credit card industry, creating a behemoth (in terms of loan volume).

At the time of the announcement (February 2024), it was noted that the Capital One-Discover merger will likely generate and deliver attractive accretion and returns for its shareholders. Expense synergies of $1.5 billion in 2027, coupled with network synergies of $1.2 billion, underscore the value-creation potential of the merger. The transaction will result in a more than 15% accretion to adjusted non-GAAP EPS by 2027.

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This article originally published on Zacks Investment Research (zacks.com).

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