Groww Nifty 1D Rate Liquid ETF NFO: Date & NAV

Groww Nifty 1D Rate Liquid ETF: Complete Overview

Under AMC Groww Asset Management Limited, Groww Mutual Fund introduces the Groww Nifty 1D Rate Liquid ETF. Subscribers can start taking part on September 16, 2024, the new fund offer will expire on September 20, 2024. On October 07, 2024, this mutual fund scheme will be available for continuous sale and repurchase. 

For the Groww Nifty 1D Rate Liquid ETF NFO, multiples of Rs.1 are available at a minimum subscription value of Rs.500. There is a low risk associated with the proposal. It is not assured that the investing objective of the program will be achieved.

Groww Nifty 1D Rate Liquid ETF is an exchange-traded fund that is open-ended and replicates the Nifty 1D Rate Index. A program with comparatively minimal credit risk and interest rate risk.

 

What is the meaning of NIFTY 1D rate index?

The objective is to calculate the returns that market players who lend in the overnight market produce. The overnight rate made available by the "Triparty Repo Dealing System (TREPS)" is used by the index to calculate index values.

 

What is 1D return?

A 1-day return displays the absolute and percentage profitability of your open holdings as of the last trading day.

Scheme Plan: The scheme does not offer any plans or options.

 

Key Features:

High Liquidity: The ETF is one of the most liquid investment options on the market because it mostly makes investments at overnight rates.

Low Risk: This ETF is a great choice for conservative investors because it carries a low risk due to its investments in highly liquid securities.

Transparent and Efficient: Its real-time updates and transparent pricing, as an ETF, let investors keep a close eye on their assets.

Cost-Effective: ETFs are a more affordable option for investors because they often have lower expense ratios than conventional mutual funds.

 

Scheme Suitability:

Groww Nifty 1D Rate Liquid ETF might be suitable for:

• Minimal Risk Takers: Conservative investors who want to park excess capital in a way that minimizes risk and maximizes liquidity.

• Investors With Short-Term Goals: Those trying to manage cash flows effectively or hold onto money for unforeseen expenses.

• Portfolio Diversifiers: Investors that wish to use liquid, low-risk assets as a cash management tool and add them to their portfolios are known as.

 

Click Here To Stay Updated With The Upcoming NFOs.

 

 

Fund Overview

How To Invest In The Scheme After The Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on October 07, 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Groww Nifty 1D Rate Liquid ETF” or directly with the AMC or simply click the ‘Banner’ below.

 

The Objective of The Fund

To supply current income that is commensurate with low risk and high liquidity, mainly through a portfolio of overnight products such as reverse repos, repo in government securities, and tri-party REPO. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

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

Peers of Groww Nifty 1D Rate Liquid ETF

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

• The value of the equities that make up the benchmark index is strongly correlated with the NAV of the units. The value of this will fluctuate in response to changes in the stock market, which could alter the NAV of the scheme's units.

• The scheme's performance may be impacted by tracking errors.

• The program offers exposure to the benchmark and closely tracks its yield and performance. It is a passively managed strategy. The overall decrease in stock market prices could have an impact on the Schemes' performance.

• Since the plan calls for investing at least 95% of net assets in securities that make up the Nifty 1D Rate Index, any securities added to or removed from the index may necessitate the quick and easy sale of those stocks at the going rate, regardless of whether their valuation is sufficiently attractive. The interests of unitholders might not always align with this.

• The scheme's success would be directly impacted by the Nifty 1D Rate Index-TRI's performance. Therefore, the scheme will be affected by any changes in composition caused by changes in weight or stocks chosen. 

 

Past Performance of Liquid ETF Funds

 

Groww Nifty 1D Rate Liquid ETF-Growth Fund Managers:

• Mr. Kaustubh Sule.
  
  

Conclusion

The fund has a profile that is moderate in risk. Your investing horizon and risk tolerance should be taken into account. Offering a balance of safety, liquidity, and cost-effectiveness, the Groww Nifty 1D Rate Liquid ETF NFO is a thoughtful addition to the liquid investment market. This ETF can be a good choice if you're managing cash flows, trying to diversify your holdings, or just need a place to put your extra money.