Zerodha Fund House launches India`s first Growth Liquid ETF
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Zerodha Fund House today announced the launch of its new scheme and India’s first Growth Liquid ETF - Zerodha Nifty 1D Rate Liquid ETF. The fund is expected to be listed on NSE and BSE exchanges by the 24th January, 2024.
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 short-term debt products backed by treasury bills, it carries a relatively low credit risk and low interest rate risk. The fund may facilitate a seamless transition between equity and cash within the same settlement, thereby facilitating better cash management and hence suitable for all types of investors.
Vishal Jain, CEO, Zerodha Fund House said, “This new product from ZFH marks the arrival of liquid ETFs that offer a Growth NAV for the first time in India. This feature makes it easier to track the ETF's performance. Additionally, the returns are taxed only when the ETF is sold, as compared to daily dividend which is taxed continuously. To further enable more retail investors, the ETF will have a lower ticket size, starting with a NAV of 100
The Index
The Nifty 1D Rate Index has been developed to measure the returns generated by market participants lending in the overnight market.
The index uses the overnight rate provided through Tri-Party Repo Dealing System (TREPS) for computation of index values.
The minimum application amount for the Zerodha Nifty 1D Rate Liquid ETF is Rs. 500/-. For more information, visit Zerodha Nifty 1D Rate Liquid ETF.
Product Label and Risk-o-meter of schemes
The product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made.
Potential Risk Class (‘PRC”) Matrix of the Scheme
Summary:
- Category: Other - ETF (Exchange Traded Fund)
- Benchmark: The Nifty 1D Rate Index
- Debt Fund Manager: Mr. Apurv Parikh
- Tentative listing date: 24th January, 2024
- Minimum Application Amount: Rs. 500
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