Nine months after its launch, JioBlackRock is struggling to make inroads in India's $900bn mutual fund industry. The ambitious joint venture between BlackRock and Mukesh Ambani's Jio Financial Services has seen assets under management decline to Rs175bn ($1.9bn) from Rs178bn raised for three funds last July.

Despite promises of lower costs through technology, the venture has failed to break through India's entrenched distribution networks. Industry experts note that JioBlackRock's decision to bypass traditional intermediaries has hampered its growth, as over 70% of retail investments still flow through distributors. The company has launched 13 active funds and attracted over 1mn customers across 95% of the country.

Competition remains fierce from established players like HDFC Bank and State Bank of India, which benefit from extensive rural distribution networks and customer loyalty. While BlackRock sees parallels with the evolution of US and UK markets, industry analysts suggest building trust in India's asset management sector takes at least a decade. The venture may still pivot to work with select distributors as it seeks to gain market share in one of the world's fastest-growing economies.