Jio does it again. Ties up with the largest asset management company (BlackRock) in the world to enter the AMC space.
What is BlackRock and what does this deal mean🤝?
BlackRock is a US-based firm with an incredible $11 trillion in assets under management (AUM), equivalent to nearly 7% of the global financial assets, surpassing even Vanguard.
Having worked at BlackRock I can tell you that they have a world-class tech platform called Aladdin along with years of experience in investment management.
But is this the first time they are entering India?
Well, No.
They first ventured into India by buying Merill Lynch's assets in 2006 and later also partnered with DSP group which was then called DSP BlackRock AMC.
They have now come back and partnered with Jio Financial Services in a 50:50 JV to form Jio BlackRock.
This will give them an immense distribution network with Indian expertise.
What does this mean for the AMC space?
Currently, this space has around 50 players managing an AUM of about ₹44.8 trillion as of June 2023.
The top 10 players have about an 80% market share.
As per a recent report from Jefferies, Indians have invested only 4.7% into equities out of the $11.1 trillion in household assets as of March 2023.
There will definitely be some consolidation in this industry but these are exciting developments and times in the AMC space.
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Follow me (Ritesh Sabharwal CFPᶜᵐ) as I Simplify Personal Finance and Investing
#money #assetmanagement #personalfinance
What is BlackRock and what does this deal mean🤝?
BlackRock is a US-based firm with an incredible $11 trillion in assets under management (AUM), equivalent to nearly 7% of the global financial assets, surpassing even Vanguard.
Having worked at BlackRock I can tell you that they have a world-class tech platform called Aladdin along with years of experience in investment management.
But is this the first time they are entering India?
Well, No.
They first ventured into India by buying Merill Lynch's assets in 2006 and later also partnered with DSP group which was then called DSP BlackRock AMC.
They have now come back and partnered with Jio Financial Services in a 50:50 JV to form Jio BlackRock.
This will give them an immense distribution network with Indian expertise.
What does this mean for the AMC space?
Currently, this space has around 50 players managing an AUM of about ₹44.8 trillion as of June 2023.
The top 10 players have about an 80% market share.
As per a recent report from Jefferies, Indians have invested only 4.7% into equities out of the $11.1 trillion in household assets as of March 2023.
There will definitely be some consolidation in this industry but these are exciting developments and times in the AMC space.
==============
Follow me (Ritesh Sabharwal CFPᶜᵐ) as I Simplify Personal Finance and Investing
#money #assetmanagement #personalfinance
