Zerodha Nifty 1D Rate Liquid ETF

What is Zerodha Nifty 1D Rate Liquid ETF?

Zerodha Nifty 1D Rate Liquid ETF (Symbol/ticker: LIQUIDCASE) is a type of ETF that aims to provide easy liquidity with relatively less risk. It follows the "Nifty 1D Rate" as its benchmark and mainly invests in short-term debt products. This ETF offers a simple and effective way to manage cash with low interest and credit risk.

It is the first Liquid ETF in India that provides a growth NAV (Net Asset Value), which means that the returns are reflected in its daily price. This feature makes it easier to track the ETF's performance. Additionally, the returns are taxed only when the ETF is sold, unlike ETFs that pay dividends and are taxed continuously. This ETF can be a good choice for investors who have extra money and want both liquidity and some growth for a short period.

How does a Zerodha Nifty 1D Rate Liquid ETF work?

Zerodha Nifty 1D Rate Liquid ETF invests in securities with overnight maturity eg. TREPS, CDs/CPs, T-Bills, and/or Repos. The ETF's NAV is based on the accruals from these securities, providing investors with observable returns and the benefit of accruing interest. 
Please refer to the scheme information document for further details.

How to invest in Zerodha Nifty 1D Rate Liquid ETF?

Zerodha Nifty 1D Rate Liquid ETF, similar to other stocks or ETFs, is listed on the NSE & BSE exchange. Investor can search it using the Symbol/ticker: LIQUIDCASE. One can invest in this ETF using a preferred stock broker (Zerodha, Groww, Upstox, etc).

How do I know that Zerodha Nifty 1D Rate Liquid ETF is trading at the right price on the exchange?

Investors can use the Intraday Net Asset Value (iNAV) as a valuable tool to assess whether a Liquid ETF is trading at a fair price on the exchange. It is computed based on the current market value of the scheme portfolio during the trading hours of the scheme and is updated every 90 minutes. You can track it on our website.

What are the benefits of investing in Zerodha Nifty 1D Rate Liquid ETF?

It is the first Liquid ETF in India that provides a growth NAV (Net Asset Value), which means that the returns are reflected in its daily price. This feature makes it easier to track the ETF's performance. Additionally, the returns are taxed only when the ETF is sold, unlike ETFs that pay dividends and are taxed continuously.

How is Zerodha Nifty 1D Rate Liquid ETF different from other ETFs?

Zerodha Nifty 1D Rate Liquid  ETF differs from other ETFs by offering a growth-oriented structure rather than a fixed value.

What is the average return expected from Zerodha Nifty 1D Rate Liquid ETF?

The expected returns from Zerodha Nifty 1D Rate Liquid ETF would depend on market conditions and the performance of the underlying securities. As it is designed with low-risk instruments, the returns are likely to be moderate.

Can I redeem Zerodha Nifty 1D Rate LiquidETF units anytime?

Yes, being an open-ended ETF, investors can redeem Zerodha Liquidcase ETF units at any time, subject to the terms and conditions specified in the Scheme Information Document.

Also, Zerodha Nifty 1D Rate Liquid ETF does not distribute dividends to investors. Instead, the focus is on the Net Asset Value (NAV) growth over time.

What is the risk of capital loss in Liquid ETFs?

The risk of capital loss in Liquid ETFs is generally low, especially in the case of Zerodha Nifty 1D Rate Liquid ETF, which invests in low-risk securities such as Treasury Bills and Repos. However, all investments carry some risk, and market conditions can impact returns. Refer to the Scheme Information Document for details.

Does Zerodha Nifty 1D Rate Liquid ETF pay dividends?

No, Zerodha Nifty 1D Rate Liquid ETF follows a growth-only option. This means that the ETF does not distribute dividends to investors. Instead, the focus is on the Net Asset Value (NAV) growth over time. Investors benefit from the accruing interest, and the returns are reflected in the increasing NAV, providing an observable return to investors without the need to wait for dividends to be credited.

Read more about our Liquid ETF here