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HDFC Asset Management Co. Ltd (HDFC AMC), investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses has announced the launch of HDFC NIFTY 1D Rate Liquid ETF (“the Scheme”). The investment objective of the scheme is to invest in Tri-Party Repos in Government Securities or Treasury Bills (TREPS). The Scheme aims to provide investment returns that, before expenses, correspond to the returns of the NIFTY 1D Rate Index. The captioned NFO opens on August 18, 2023, and closes on August 23, 2023.

Investors with a demat account can park their idle funds in the Scheme and earn returns while they await better trading opportunities. In addition, scheme units can be used as collateral for margin trading^. The Scheme provides an attractive investment avenue for investors with a demat account, allowing them to earn returns with low risk while enjoying the benefits of liquidity. The Scheme can be used by active traders, Securities Brokers, PMS and AIFs, Family Offices etc. to manage surplus cash and earn returns on collateral pledged as margin with no MtM risk, as investment is in overnight TREPs.

Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited said, “HDFC Mutual Fund continues to expand its offerings to provide diversified investment solutions with our ‘Investor First’ focus. The HDFC NIFTY 1D Rate Liquid ETF illustrates our commitment to continuously meet investor needs, as it allows investors to easily and effectively manage surplus cash.”

*IDCW is subject to the availability of distributable surplus

^ Margin available / haircut applied depends on broker

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