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Home >> Blog >> Shriram Nifty 1D Rate Liquid ETF NFO: Review, Date & NAV

Shriram Nifty 1D Rate Liquid ETF NFO: Review, Date & NAV

  


Introduction

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'Shriram Nifty 1D Rate Liquid ETF'.

This article will describe what is included in the fund program and how it works. Read this blog carefully to understand the offerings, risks, and other attributes of this scheme.

 

Everything You Need to Know About Shriram Nifty 1D Rate Liquid ETF-NFO

The open-ended Shriram Nifty 1D Rate Liquid ETF, which tracks the Nifty 1D Rate Index, has been launched by Shriram Mutual Fund. Subscriptions for the scheme's NFO will be accepted starting on July 1 and ending on July 3.

The lowest investment required to join is Rs.1000 for investors and in multiple of Rs.1 thereof. The scheme is suitable for such investors who are looking for a reliable and liquid substitute for conventional savings accounts and Liquidity and safety for short-term investments. The scheme possesses Low risk. The scheme has a no Exit Load and no Entry Load.

 

Shriram Nifty 1D Rate Liquid ETF - NFO Overview

The investment period for the Scheme is set for July 1, 2024, to July 3, 2024. The scheme is a low-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest in securities that are part of the Nifty 1D Rate Index, cash and cash equivalents, other money market instruments, Tri-Party Repo on government securities, or T-bills/Repo & Reverse Repo.

 

 

Fund Overview

Start Date

01 July 2024

End Date

03 July 2024

VRO rating

-

Expense ratio

NA

Exit load

NA

AUM (Fund size)

NA

Lock-in

No Lockin

Stamp Duty

0.005% (From July 1st 2020)

Benchmark 

Nifty 1D Rate Index

Min. Investment

Rs.1000

Risk

Low

Short-term capital gains (STCG)

For less than 3 years, as per Tax Slab

Long-term capital gains (LTCG)

For more than 3 years, 20% is applicable.

 

The Objective of the Fund

The Scheme intends to invest in Treasury bills, also known as Tri-Party Repo on Government Securities (TREPS). Subject to tracking error, the Scheme seeks to deliver investment returns that, before costs, match the returns of the NIFTY 1D Rate Index. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Net Assets)

Maximum Allocation (% of Net Assets)

Tri-party repo on Government Securities or T-bills, Reverse repo & Cash and Cash equivalents

95

100

Other money market instruments with a residual maturity of up to 30 days.

0

5

 

 

Peers of Shriram Nifty 1D Rate Liquid ETF

There is no Peer group mentioned in the DRHP as given by the Fund.

 

Risk Factors in Such Funds

  • Even when ETF units are listed for trading on the Stock Exchange, there is no guarantee that a vibrant secondary market will emerge or continue to exist.

  • The returns from the multiple asset classes or general securities markets that a scheme invests in may not outperform the returns from the securities it invests in. When compared to the general securities markets, different kinds of securities frequently experience cycles of outperformance and underperformance.

  • Given that the Scheme lacks active management, a widespread drop in the Indian markets with respect to its Underlying Index may have an impact on the underlying investments. Regardless of the securities' potential for profit, the plan makes investments in the ones that are part of its underlying index.

  • AMC's ability to maintain a high correlation with the scheme's underlying index may be impacted by several factors, including its corporate behavior, liquidity, shifts to the underlying index, and regulatory policies. As a result, the Fund Manager may not be capable of investing the whole corpus just in the identical amount as with the underlying index.

 

Past Performance of Index / Debt Funds

Index / Debt Funds

NAV (Rs)

Annualized Return (1Y)

Return/Risk

Navi Nifty Bank Index Fund - Direct Plan-Growth

13.48

18.86%

Very High Risk

Motilal Oswal S&P 500 Index Fund - Direct Plan-Growth

20.911

27.92%

Very High Risk

Invesco India Nifty G-Sec Sep 2032 Index Fund - Direct Plan-Growth

1107.65

7.58%

Moderate Risk

 

Shriram Nifty 1D Rate Liquid ETF NFO - Who can invest?

This fund is ideal for you if you are looking for a stable, liquid alternative to traditional savings accounts, Safety and liquidity for short-term funds, and those who are looking to take low risk in a scheme.

 

 

Shriram Nifty 1D Rate Liquid ETF NFO - Growth Fund Managers

  • Mr. Deepak Ramaraju

  • Ms. Gargi Bhattacharyya Banerjee

 

Conclusion

The scheme comes under a low-risk category and it plans to invest in securities that are part of the Nifty 1D Rate Index, cash and cash equivalents, other money market instruments, Tri-Party Repo on government securities, or T-bills/Repo & Reverse Repo. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision.

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.



Frequently Asked Questions

+

The Shriram Nifty 1D Rate Liquid ETF-NFO will open for business on July 01, 2024.

+

The end date of the Shriram Nifty 1D Rate Liquid ETF-NFO is July 03, 2024.

 

+

The Shriram Nifty 1D Rate Liquid ETF-NFO's fund managers are Mr. Deepak Ramaraju and Ms. Gargi Bhattacharyya Banerjee.

+

The minimum investment for the Shriram Nifty 1D Rate Liquid ETF-NFO is Rs.1000.



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