Big milestone! Zerodha Fund House’s this mutual fund crosses Rs 1,000 crore AUM
Zerodha Fund House (ZFH) on Tuesday said that its Growth Liquid ETF, Zerodha Nifty 1D Rate Liquid ETF, has crossed Rs 1,000 crore in assets under management (AUM).
Zerodha Nifty 1D Rate Liquid ETF, launched on January 24 this year, distinguishes itself as India’s first liquid exchange-traded fund (ETF) with a growth NAV.
The Zerodha Nifty 1D Rate Liquid ETF replicates the Nifty 1D Rate Index, which measures the returns generated by market participants lending in the overnight market.
The ETF primarily invests in TREPS (Treasury Bills Repurchase) traded on the CCIL (Clearing Corporation of India Ltd) platform.
As the investment is made in overnight debt products backed by treasury bills, it carries a relatively low credit risk and low interest rate risk, Zerodha Fund House said.
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The ETF may facilitate a seamless transition between equity and cash within the same settlement, thereby facilitating better cash management and hence may be suitable for all types of investors. Unlike the returns of other Liquid ETFs, the returns in the Nifty 1D Rate Liquid ETF are reflected in its day-to-day NAV movement instead of paying out dividends.
Vishal Jain, CEO, Zerodha Fund House expressed his views on the milestone, “Over 60,000 investors have started using this ETF as a simple and effective way to manage cash with a relatively low interest rate risk and credit risk. LIQUIDCASE, which is India’s first Liquid ETF with Growth NAV, reaching the Rs 1000 crore AUM mark is a significant accomplishment in our journey of simplifying products and enabling greater reach and participation.”
Deepak Shenoy, Founder,
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