Zerodha Nifty 1D Rate Liquid ETF crosses Rs 1,000 crore AUM
Zerodha Mutual Fund announced that Zerodha Nifty 1D Rate Liquid ETF crossed Rs 1,000 crore assets under management (AUM). The unique scheme from the fund house marked the arrival of Liquid ETFs that offer a growth NAV for the first time in India, according to a press release from the fund house.
The fund was launched on January 24. Zerodha Nifty 1D Rate Liquid ETF is benchmarked against 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.
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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.
“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 1,000 crore AUM mark is a significant accomplishment in
