- Understanding the Two Categories
- Key Fund Details at a Glance
- Taxation: The "New Regime" Benefit
- Who Should Consider These Funds?
- Conclusion
JioBlackRock Asset Management has announced the launch of two new open-ended debt mutual fund schemes: the JioBlackRock Low Duration Fund and the JioBlackRock Short Duration Fund.
The New Fund Offer (NFO) for both schemes is scheduled to open on January 8, 2026, and will close on January 13, 2026.
For investors looking for options to park surplus cash or seeking alternatives to traditional savings instruments, here is a simple breakdown of what these funds offer and how they differ.
Understanding the Two Categories
In the world of debt mutual funds, schemes are categorised based on the time frame (duration) of the bonds they invest in.
1. JioBlackRock Low Duration Fund
- What is it? This fund invests in debt and money market instruments.
- Time Frame: The portfolio is managed so that the "Macaulay Duration" (average time to maturity of the bonds) is between 6 months and 12 months.
- Suitability: It is designed for investors with an investment horizon of 6 months or longer. It serves as an option for short-term financial goals.
2. JioBlackRock Short Duration Fund
- What is it? This fund also invests in debt and money market instruments but holds them for a slightly longer period.
- Time Frame: The portfolio duration is maintained between 1 year and 3 years.
- Suitability: It is suitable for investors with an investment horizon of 1 to 3 years. It aims to provide fixed-income stability to portfolios that might be heavy on equity.
Key Fund Details at a Glance
Both funds share similar cost structures and management teams but track different benchmarks.
| Feature | Low Duration Fund | Short Duration Fund |
| Benchmark | NIFTY Low Duration Debt Index A-I | NIFTY Short Duration Debt Index A-II |
| Expense Ratio (TER) | 0.20% | 0.20% |
| Exit Load | NIL | NIL |
| Fund Managers | Mr. Siddharth Deb, Mr. Arun R, & Mr. Vikrant Mehta | Same |
Note on Exit Load: Both funds have Zero Exit Load, meaning investors can redeem their money at any time without paying a penalty fee to the fund house.
Taxation: The "New Regime" Benefit
The presentation highlights an important aspect regarding taxation for individual investors under the New Tax Regime.
Debt mutual fund returns are generally added to your income and taxed according to your income tax slab. However, under the Finance Act 2025 revisions:
- Income up to ₹12 Lakh: If an individual’s total taxable income (including gains from these funds) is up to ₹12 Lakh, the net tax liability is zero.
- Why? This is due to the tax rebate available under Section 87A of the Income Tax Act.
For Investors in Higher Brackets:
For those with income above ₹12 Lakh, the gains from these funds will be taxed at their applicable slab rates (e.g., 30% for the highest bracket).
Who Should Consider These Funds?
According to the fund house, these products are positioned for:
- Individual Investors:
- Those looking to generate income over a short horizon.
- Investors want to park surplus cash for upcoming expenses.
- Investors are moving money from equity to debt (asset allocation).
- Institutional Investors:
- Companies managing treasury funds or working capital needs.
- Managing cash flow around quarterly tax outflows.
Conclusion
The JioBlackRock Low Duration and Short Duration funds add to the list of options available for conservative investors. With a low expense ratio of 0.20% and no exit load, they are structured to be accessible liquidity management tools.
Investors should choose between the two based strictly on their time horizon: 6-12 months for the Low Duration Fund, and 1-3 years for the Short Duration Fund.
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