New Delhi, July 16 -- Earlier this month, one of India's most anticipated mutual fund ventures finally took off. Jio BlackRock Asset Management, an equal joint venture between Jio Financial Services and global investment giant BlackRock, announced that it had mobilized Rs.17,800 crore through the new fund offers (NFOs) of its first three schemes. All three are debt-oriented funds, a category where institutional investors typically account for about 80% of assets under management (AUM).

It's a start. The real test lies ahead: whether the two heavyweight promoters can scale operations in line with their ambitions, and disrupt India's mutual fund industry, as they've pledged. That promise is partly what underpins the premium valuation Mukes...