Zerodha Fund House launches India's first Growth Liquid ETF
Bengaluru, 9th January, 2024: 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
This product is suitable for investors who are seeking*:
Short Term savings solution
Investment in securities covered by NIFTY 1D Rate Index.
Investors should understand that their principal will be at Low Risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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.
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
About Zerodha Fund House: Zerodha Fund House is an Asset Management Company, a JV between Zerodha Broking Ltd and Smallcase Technologies Pvt Ltd. Zerodha Fund House will enable a new generation of investors access the capital markets with the same principles of simplicity, cost-effectiveness, and transparency to investment products as its parent organizations. Learn more at https://www.zerodhafundhouse.com/
For more details and Investing
Mr. K. Kirubakaran,
AMFI Registered Mutual Fund Distributor
Vadapalani,
Chennai
Mob : 73050 68154
Eamail : moneykriya@gmail.com
Web Site: www.moneykriya.com
Disclaimer: This is not investment advice or buy or sell recommendation. Readers should do their own research and analysis or consult an investment adviser/s before investing in schemes of mutual funds. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
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