Zerodha Fund House: The ETF replicates the Nifty 1D Rate Index, which tracks the returns generated by overnight lending market players.
- The Nifty 1D Rate Liquid ETF by Zerodha replicates the Nifty 1D Rate Index.
- Apurv Parikh, a seasoned financial industry veteran, manages the fund.
- The proposed listing date is January 24.
The Zerodha Fund House unveiled a new plan and the Zerodha Nifty 1D Rate Liquid ETF, India’s first growth liquid exchange-traded fund (ETF), on Wednesday. By January 24, the fund should be listed on the NSE and BSE marketplaces. The Zerodha Nifty 1D Rate Liquid ETF mimics the Nifty 1D Rate Index, which tracks the returns created by market participants lending in the overnight market. The ETF mainly makes investments in Treasury Bills Repurchases, or TREPS, which are traded on the clearing corporation of India Ltd. (CCIL) platform.
The investment has a comparatively low credit risk and low interest rate risk because it is made in short-term debt instruments backed by treasury bills. The fund might make it easier to move between cash and stock inside the same settlement, which would improve cash management and make it appropriate for all kinds of investors.
It is run by Apurv Parikh, a seasoned finance industry executive.
Information
- 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
Vishal Jain, CEO of Zerodha Fund House, stated, “This new product from ZFH marks the arrival of liquid ETFs that offer a Growth NAV for the first time in India. It is now simpler to monitor the ETF’s performance thanks to this functionality. Additionally, the returns are taxed only when the ETF is sold, as compared to daily dividends, which are taxed constantly. The ETF will start with an NAV of 100 and have a smaller ticket size to help facilitate more retail participants.
This product is appropriate for investors seeking reasonable returns while taking minimal risks. This ETF managed by Parikh is meant to appeal to investors seeking a balance of security and growth in their investment portfolio. Investment in securities covered by the NIFTY 1D Rate Index. The Nifty 1D Rate Index has been designed to assess the returns made by market players lending in the overnight market. The Tri-Party Repo Dealing System (TREPS) overnight rate is used by the index to calculate index values. The Zerodha Nifty 1D Rate Liquid ETF requires a minimum application amount of Rs 500.
The product labeling that is assigned during the New Fund Offer (NFO) may differ after the NFO when actual investments are made, as it is based on an internal evaluation of the scheme characteristics or model portfolio.
