Paytm Money and JioBlackRock Mutual Fund have launched India’s first artificial intelligence-powered flexi-cap equity fund, aiming to reshape retail investing by combining AI-driven insights with traditional market expertise. The scheme, called JioBlackRock Flexi Cap Fund, opened for subscription as a New Fund Offer (NFO) on September 25 and will remain open until October 7.
The fund represents a significant milestone for the Indian mutual fund industry, which is increasingly exploring advanced technologies to improve portfolio management and investor experience. Flexi-cap funds, by design, allow fund managers to invest across large-cap, mid-cap, and small-cap stocks, offering flexibility to adjust strategies in response to market movements. With AI integrated into the process, the fund seeks to enhance decision-making through data-driven analysis of market signals, company fundamentals, and broader economic patterns.
According to JioBlackRock Mutual Fund, the AI engine powering the fund will process large datasets, identify trends, and flag potential opportunities or risks that may not be immediately visible through traditional analysis. This information will then complement human fund managers’ judgment, enabling a hybrid model of technology-assisted investing. The AI system is expected to improve agility in responding to market volatility while helping balance risk and return for investors.
The introduction of AI into the mutual fund space comes at a time when India’s retail investor base is expanding rapidly. Over 4.5 crore new demat accounts have been opened in the last two years, and assets under management of mutual funds crossed ₹60 trillion in August 2025. The launch reflects growing efforts to meet rising demand for innovative and tech-driven financial products tailored to first-time and digital-savvy investors.
Varun Sridhar, CEO of Paytm Money, stated that the AI-powered fund is designed to simplify investing for the everyday customer. He emphasized that the partnership with JioBlackRock combines global expertise in asset management with Paytm’s digital distribution reach. According to Sridhar, this model could bridge the gap between sophisticated investment strategies and retail participation, allowing investors to benefit from institutional-grade analytics.
Rajiv Shastri, CEO of JioBlackRock Mutual Fund, highlighted that the fund’s approach aligns with global trends where AI tools are increasingly used to enhance active fund management. He added that AI will not replace fund managers but act as a co-pilot, enabling more informed and timely decisions while adhering to regulatory frameworks and fiduciary responsibilities.
Industry experts view this development as part of a broader shift toward the “future of investing,” where advanced technologies such as AI, machine learning, and predictive analytics are being integrated into wealth management platforms. While passive funds have grown in popularity in recent years, innovations like AI-driven active funds aim to reinvigorate interest in actively managed strategies by promising better responsiveness and personalization.
The AI-powered Flexi Cap Fund will primarily invest in a diversified portfolio of equity and equity-related instruments, with sector and stock allocations guided by both machine learning insights and human expertise. Investors will also benefit from the fund’s flexible structure, which enables allocation across market capitalizations depending on prevailing opportunities.
The partnership between JioBlackRock and Paytm Money underscores the rising convergence of technology and finance in India. With Paytm Money’s digital platform making mutual fund investing accessible to millions of retail investors, and JioBlackRock bringing global asset management capabilities, the fund is positioned as a unique offering in the domestic market.
Analysts suggest that investor adoption will depend on performance in the coming quarters, particularly in how effectively the AI component contributes to returns without significantly increasing risk. Concerns around transparency in AI-driven decision-making and data privacy remain areas that regulators and asset managers will need to address to build trust among investors.
Nevertheless, the launch signals growing confidence in the role of artificial intelligence in India’s financial services sector. By embedding AI into a regulated investment product, the initiative sets a precedent for other asset managers to explore similar innovations. If successful, the fund could pave the way for wider integration of AI across asset classes, from equities to debt and hybrid funds.
The offering also aligns with the trend of financial inclusion, as digital-first solutions expand access to investment opportunities for smaller towns and younger investors. With minimum investment thresholds kept low and distribution fully enabled through mobile platforms, Paytm Money and JioBlackRock aim to attract first-time investors while providing a sophisticated product backed by cutting-edge technology.
As India’s mutual fund industry continues to expand and diversify, the success of this AI-driven fund will be closely watched by both domestic and global players. Whether it delivers consistent returns or simply sparks further experimentation, the launch marks a new chapter in how technology and human expertise can converge to shape the future of investing.