Synopsis: This article compares JioBlackRock Liquid Fund and JioBlackRock Nifty Smallcap 250 Index Fund to understand which aligns better with your risk profile. This analysis breaks down returns, risks, and ideal use cases to help you choose the right fund with confidence.
The JioBlackRock Liquid Fund provides low-risk, liquidity-focused investments, whereas the JioBlackRock Nifty Smallcap 250 Index Fund delivers long-term growth through small-cap equity exposure, in alignment with diverse investor objectives and risk tolerance levels.
Fund Overview
| Parameter | JioBlackRock Liquid Fund | JioBlackRock Nifty Smallcap 250 Index Fund |
| Fund Type | Debt (Liquid Fund) | Equity (Smallcap Index Fund) |
| Investment Objective | Capital preservation and liquidity | Long-term capital growth via small-cap index tracking |
| Risk Profile | Low | High |
| Minimum Investment | ₹1,000 | ₹500 |
| Fund Manager | JioBlackRock Asset Management | JioBlackRock Asset Management |
Investment Philosophy
- Liquid Fund: Seeks to achieve stable NAV and liquidity by investing in high-quality money market instruments; appropriate for short-term investing or cash management.
- Smallcap Index Fund: Replicates the Nifty Smallcap 250 Index’s investment returns, and is passively managed; seeking diversified investment exposure (and returns) in small-cap stocks with growth potential.
Portfolio Construction & Holdings
- Liquid Fund: Investments focus on treasury bills, certificates of deposit and commercial paper; primarily invests in instruments of high-credit quality to maintain capital protection.
- Smallcap Index Fund: Invests in 250 small-cap companies in diverse sectors, including financial services, healthcare, FMCG, and industrials; and reflects the investments of the Nifty Smallcap 250 Index.
Risk and Volatility, Expense Ratio and Exit Load
| Parameter | JioBlackRock Liquid Fund | JioBlackRock Nifty Smallcap 250 Index Fund |
| Risk Level | Low | High |
| Standard Deviation | 0.20% | 11.19% |
| Expense Ratio | 0.06% | 0.15% |
| Exit Load | Nil (if redeemed after 7 days) | Nil (after 1 year); 1% (if redeemed within 1 year) |
| Return | 2.19 | 1.79 |
| First Trading Date | July 3, 2025 | August 18, 2025 |
Also read: Top 10 Best Performing Mutual Funds Gen Z Investors Should Consider in 2025
Suitability for Investors
- Liquid Fund: Suitable for an investor with low risk tolerance, who prefers liquidity and capital preservation, and is appropriate for short-term investing (or cash management sometimes).
- Smallcap Index Fund: Suitable for an investor with a preference for risk-taking, which believes small-sized companies provide better returns over a longer investment horizon; and will use the equity markets as a means to create wealth.
Summary Table
| Feature | JioBlackRock Liquid Fund | JioBlackRock Nifty Smallcap 250 Index Fund |
| Fund Type | Debt (Liquid) | Equity (Smallcap Index) |
| Risk | Low | High |
| Expected Return | Stable, low | Volatile, potentially high |
| Investment Horizon | Short-term (days to months) | Long-term (5+ years) |
| Liquidity | High | Moderate to low |
| Tax Efficiency | Debt tax rules apply | Equity LTCG tax advantage |
| Expense Ratio | 0.06% | 0.15% |
JioBlackRock Liquid Fund – Top 7 Holdings
- Reserve Bank of India – 7.8%
- Kotak Mahindra Securities Ltd. – 5.7%
- Reliance Retail Ventures Ltd. – 4.1%
- Axis Bank Ltd. – 3.3%
- HDFC Bank Ltd. – 3.3%
- Bank of Baroda – 3.3%
- Export-Import Bank of India – 3.3%
JioBlackRock Nifty Smallcap 250 Index Fund – Top 7 Holdings
- Multi Commodity Exchange of India Ltd. – 2.3%
- Laurus Labs Ltd. – 1.8%
- Central Depository Services (India) Ltd. – 1.4%
- Delhivery Ltd. – 1.2%
- Radico Khaitan Ltd. – 1.2%
- Karur Vysya Bank Ltd. – 1.1%
- Kaynes Technology India Ltd. – 1.0%
Conclusion
The choice between the JioBlackRock Liquid Fund and the Nifty Smallcap 250 Index Fund is contingent on time horizon and risk appetite; both will help create a well-diversified portfolio by utilizing both debt and equity instruments.
Written By Rachna Rajput