JioBlackRock Sector Rotation Fund: A Strategy for Dynamic Market Navigation

Markets tend to move in cycles. Certain sectors may soar one quarter, while the others can lead the next. What stays constant is change itself. For investors, the real challenge often is not identifying good sectors but knowing when each sector is likely to perform.

This is where sector rotation funds can come in. Instead of committing permanently to a fixed set of sectors, these funds dynamically adjust their portfolios based on changing market conditions. In a fast-evolving economy like India, this adaptive approach can become increasingly relevant.

The Opportunity: JioBlackRock Sector Rotation Fund

It is an open ended equity scheme that tilts its sector weights based on investment insights and prevailing market conditions. What sets this fund apart is the combination of global investing expertise and advanced analytics, bringing institutional-grade processes to retail investors.

How the Investment Process Works

At the core of the fund is a Systematic Active Equity (SAE), a technology-driven investment approach that combines human expertise with a data-driven model to build a portfolio.

Aladdin® is BlackRock’s proprietary platform which is licensed to the JioBlackRock AMC. The above representation is for illustration purpose only. The Information Ratio (IR) is a key performance metric that evaluates how effectively an investment manager generates excess returns relative to a benchmark, considering the risk taken.

Step 1: Starting Universe

The process begins with the NIFTY 500, ensuring broad diversification across sectors and market capitalisations.

Step 2: Sector-Level Signal Evaluation

Each sector is assessed using multiple factors such as valuation, growth and quality indicators, momentum, macro trends, and analyst sentiment. These inputs are processed using advanced analytics and alternative data sources to generate sector-level alpha scores.

Step 3: Portfolio Construction and Risk Control
These scores are fed into Aladdin, BlackRock’s proprietary platform which is licensed to the JioBlackRock AMC. The Aladdin Optimisation Engine integrates fund manager inputs, security level risk modelling, and estimated transaction costs to balance return potential with appropriate risk controls.

Step 4: Defining Active Weights for Each Sector

Active weights for each sector are generated, and a final optimised portfolio is constructed by combining sector and stock-specific inputs, governance filters and liquidity filters, etc.

Why Indian Markets Are Ready for JioBlackRock Sector Rotation Fund

India’s equity markets have matured significantly over time, making them well-suited for systematic approach.

1. Indian equities market growth: India's market cap has grown to ~$5.4tn as on 31st Dec’25¹ and it constitutes 16.48% to MSCI EM all cap (IMI) index (Dec 2025)²
2. Expanding stocks breadth: A noticeable increase in IPOs in India with more e-commerce and digital firms moving from private to public sectors, boosting the market growth³
3. Diversification within sectors: Relative to other emerging markets, India's equity market has a more balanced and diverse industry composition⁴

1. BSE India (All India Market Cap), 2. MSCI , 3. Screener & internal research, 4. MSCI India Index & internal research

Together, these factors can make data-driven, rules-based investing potentially far more effective today than in the past.

Why Consider the JioBlackRock Sector Rotation Fund?

There are a few reasons this fund may appeal to long-term investors:

• Professional Active Fund Management
  Data, tech and AI help our fund managers spot suitable sector opportunities while minimizing emotional bias.
• Total Expense Ratio (TER)¹ and Exit Load
  Reasonable TER of 0.5% and no exit load, so more of your money can stay invested without unnecessary charges.
• Risk Managed Strategy
  We aim to beat the Nifty 500 by taking small, diversified positions and carefully managing risk across sectors.

¹TER shown above is for indicative purposes only and does not reflect the actual TER. Please refer to the Scheme Information Document for the maximum permissible TER chargeable by the scheme. Post NFO, Investors are suggested to visit AMC’s website for the actual TER of the Scheme.

The Bottom Line

Markets often shift over time. Sectors that shine today may lag tomorrow. Hence, a Sector Rotation fund could offer a disciplined alternative, combining diversification with adaptability. For investors who believe that market cycles matter and want a smarter way to navigate them, the JioBlackRock Sector Rotation Fund may be one of the options as it represents a technology-enabled approach worth considering as part of a long-term equity allocation.

Disclaimers:

Risk-o-Meter & other details

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The above product labelling assigned during the New Fund Offer (NFO) is based on an internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

The systematic investment approach integrates the expertise of the Fund Managers with advanced signal research scores provided by entities of BlackRock group. These signal research scores are derived using big data (which includes traditional data and alternative data), and leverages machine learning, a form of artificial intelligence and advanced data analytics, which are constantly being improved.

This document is for informational purposes only and does not constitute investment advice or constitute an offer or solicitation to sell or buy any securities. This document is for intended recipients only. The views expressed herein are based on internal data, publicly available information and other sources believed to be reliable. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. There is no assurance that any investment strategy or Scheme will achieve its objectives or avoid losses. Certain statements in this document may contain forward-looking information, including projections, estimates, and other statements regarding future events or the future financial performance of the Scheme. These statements are based on current expectations and assumptions and actual results may differ materially due to various risks and uncertainties. The value of investments may fluctuate and there is no assurance or guarantee that the investment objectives of the Scheme will be achieved. Past performance of the sponsors, asset management company or any Scheme of the fund does not guarantee or indicate future results/returns. Neither the AMC, Trustee Company, sponsors or its affiliates nor any person connected with them shall accept any liability arising from the use of this document.

Investors are advised to read all scheme-related documents carefully before investing. Investment in mutual funds involves risks, including the possible loss of principal.

The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.