Is the much-hyped JIO Blackrock Joint Venture destined for failure?
BlackRock Tried to Capture Indian Market back 3 Decades Too, DSP Blackrock Venture failed, and
now is JIO Blackrock Joint Venture Doomed To repeat the same Faith?
DSP BlackRock Mutual Fund
DSP BlackRock was a Joint Venture Between the Most Trusted Indian Financial Institution, DSP Group, and US Based Investment management Goliath.
As of March 31, 2018, DSP BlackRock managed over $10 Billion in assets.
DSP BlackRock managed assets from over 18 Lakh Investors, including Individuals, small-sized companies And Large Corporations.
DSP BlackRock Fallout
DSP BlackRock ended Their Joint Venture on May 7, 2018.
DSP BlackRock was 60:40 Joint Venture.
After the fallout, DSP bought the entire stake and became the Sole Owner.
JIO Blackrock Joint Venture
After the Reliance JIO Demerger, JIO Financial Services, the new financial arm of Reliance Industries, is now ready to partner with the US Giant Asset Management Company BlackRock.
After the Demerger, JIO Financial Services Emerges No. 3 in NBFC.
JFS’s Market Cap was greater than that of Industry Giants, and the newly formed company defeated established giants.
“The partnership will introduce a new player to the India market with a unique combination of scope, scale, and resources“
JIO And BlackRock Said In A Joint Statement
Disrupt The Indian MF Market
“The new player would expand the market and benefit the customer, but ultimately it will be the returns that decide the success of the fund house“
A. Balasubramanian, chairman of the Association of Mutual Funds in India
According To Balasubramanian, The Mutual Fund Industry isn’t about selling products but generating returns.
If JIO Blackrock Joint Venture won’t be able to generate returns for its clients and investors, it’s doomed to repeat the same faith as that of DSP BlackRock.
The Future is still Uncertain.
