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.