Shriram AMC launches NIFTY 1D Rate Liquid ETF: Check details of scheme

The fund is suitable for investors who are seeking a stable, liquid alternative to traditional savings accounts and want safety and liquidity for short-term funds

Shriram Mutual Fund on Thursday announced the launch of the Shriram NIFTY 1D Rate Liquid ETF (Growth). It is an open-ended exchange-traded fund that will track the NIFTY 1D Rate Index. The new fund offer will be open for subscriptions from July 1 till July 3, 2024.
 

The minimum application amount will be Rs 1,000 and in multiples of Re 1 thereafter. There is no entry or exit load, and there is no lock-in period. Investors can apply through securities brokers or by depositing physical forms at their nearest CAMS Investor Service Centre. Deepak Ramaraju and Gargi Bhattacharyya Banerjee will manage the fund.
 

The fund will invest only in the overnight money market and carries lower risk due to just a one-day exposure to liquid instruments backed by government securities, said Shriram Mutual. It has lower risk due to just a one-day exposure to liquid instruments backed by government securities. The principal invested in the scheme will be at “low” risk, according to the company.
 

Who should invest
 

This fund is for investors who want to:
 

Earn higher returns on extra cash compared to a savings account, with minimal risk.
 

Hedge against equity market volatility by parking their money for a short term in a one-day liquid ETF.
 

Have the option to use it for margin pledging.
 

"With the introduction of the Shriram Nifty 1D Rate Liquid ETF (Growth), we offer an effective cash management vehicle that combines the advantages of better returns, higher liquidity and relatively lower risk. This ETF is ideal for investors wishing to increase their returns on idle capital while reducing risk by investing in stable and secure overnight products. Active traders will get the added benefit of margin pledge," said Kartik Jain, managing director and chief executive officer of Shriram AMC.