Zerodha Nifty 1D Rate Liquid ETF Investment Guide

Author

Reads 165

A trader confidently viewing stock market charts on multiple monitors in a modern workspace.
Credit: pexels.com, A trader confidently viewing stock market charts on multiple monitors in a modern workspace.

Zerodha Nifty 1D Rate Liquid ETF is a unique investment option that allows you to earn interest on your idle cash.

This ETF is designed to track the Nifty 1D Rate Index, which is a basket of short-term debt securities.

The minimum investment required to start investing in Zerodha Nifty 1D Rate Liquid ETF is Rs. 1,000.

You can invest in this ETF through the Kite mobile app or the Zerodha website, making it easily accessible to anyone with an internet connection.

This ETF has a low expense ratio of 0.10%, which means you can save on costs and earn more returns on your investment.

The Zerodha Nifty 1D Rate Liquid ETF is a liquid fund, meaning you can easily redeem your units within a day if needed.

See what others are reading: Nifty 50 Index Etf

About the Fund

The Zerodha Nifty 1D Rate Liquid ETF is designed to provide liquidity with relatively low risk. It follows the "Nifty 1D Rate" as its benchmark, which is a great way to manage cash with minimal risk.

For more insights, see: Zerodha Nifty 100 Etf

Credit: youtube.com, Zerodha Nifty 1D Rate Liquid ETF | LIQUIDCASE | Zerodha Fund House

This ETF invests in overnight instruments like Tri-Party Repo on Government Securities or T-bills, Reverse repo, Cash & Cash equivalents and G-Secs. These investments are low risk and provide a stable return.

One of the unique features of this ETF is that it offers a simple and effective way to manage cash with a relatively low interest rate and credit risk. This makes it an attractive option for those looking for a low-risk investment.

The ETF is taxed only when it's sold, unlike other ETFs that pay dividends and are taxed continuously. This can be a big advantage for investors who want to minimize their tax liability.

The Zerodha Liquid ETF has the symbol LIQUIDCASE on the NSE/BSE and tracks the Nifty 1D Rate Index as its benchmark. This index uses the overnight rate provided through the Triparty Repo Dealing System (TREPS) for computation of index values.

It invests in low-risk instruments such as overnight instruments like Tri-Party Repo on Government Securities or T-bills, Reverse repo, Cash & Cash equivalents and G-Secs. This diversification helps to minimize risk and maximize returns.

Expand your knowledge: Leveraged Etf Risk

Investment Details

Credit: youtube.com, How is Zerodha's LIQUIDCASE different from existing liquid ETFs?

The Zerodha Nifty 1D Rate Liquid ETF is a unique investment option that offers a daily dividend payout. It's based on the NIFTY 50 index, which tracks the top 50 companies listed on the National Stock Exchange of India.

The ETF has a low expense ratio of 0.15%, which is significantly lower than many other ETFs in the market. This means you can save on fees and invest more in the fund.

The minimum investment required to start investing in the Zerodha Nifty 1D Rate Liquid ETF is Rs 1, which is a very low barrier to entry.

Take a look at this: Zerodha Etf List

Minimum Investment Amount

The minimum investment amount for LIQUIDCASE is not fixed and can vary based on the supply and demand for the ETF units in the secondary market.

You can start investing in the Zerodha Liquid ETF using your preferred stock broker.

The Zerodha Nifty 1D Rate Liquid ETF (Symbol: LIQUIDCASE) currently trades on the stock exchange.

Case Investment Options

Credit: youtube.com, Easy To Follow Investing Plan for 2025 | Where to Invest ?

The Zerodha Liquid ETF is a great investment option for those looking for a liquid asset. It's available on all major stock broking platforms.

Investors can easily check the fund presentation on this page to get the list of available broking platforms, including Zerodha itself.

The LIQUIDCASE has a symbol that makes it easy to identify on trading platforms.

Fees and Charges

The expense ratio of the Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE) is 0.27% as of January 15, 2025, which is a relatively low cost.

This expense ratio is a key factor to consider when evaluating the overall cost of investing in the ETF.

There is no exit load applicable on the Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE), which means you won't have to pay any penalty for redeeming your units.

A unique perspective: Current Ratio and Liquidity

Expense Ratio of Liquid Case

The expense ratio of the Zerodha Liquid ETF, also known as LIQUIDCASE, is a crucial factor to consider when investing.

Credit: youtube.com, What is an Expense Ratio? The Fee that Kills Investments

The expense ratio of the LIQUIDCASE is 0.27% as of January 15, 2025.

This means that investors in the LIQUIDCASE will have to pay 0.27% of their investment as fees to the fund managers.

The LIQUIDCASE is a low-risk scheme, which is good news for investors who are risk-averse or just starting out.

Investors are requested to be aware that their investments are at Low Risk, making it a suitable option for those who want to minimize their risk exposure.

By understanding the expense ratio, investors can make informed decisions about their investments and plan accordingly.

What Is the Liquid's Exit Load

The Liquid's exit load is a crucial factor to consider when investing in the Zerodha Nifty 1D Rate Liquid ETF. There is no exit load applicable on the LIQUIDCASE.

This means you won't have to worry about incurring any additional fees when you decide to sell your shares. The Zerodha Nifty 1D Rate Liquid ETF (Symbol: LIQUIDCASE) is designed to be a hassle-free investment option.

Performance and Tracking

Credit: youtube.com, What is Zerodha Nifty 1D Rate Liquid ETF & How it Work? Liquid ETF Investing Strategies 📈

The Zerodha Nifty 1D Rate Liquid ETF has a tracking error of 0.10% as of January 15, 2025.

The fund's performance is impressive, with a 1.57% return over the past three months and a 3.15% return over the past six months. This is significantly better than the Nifty 50's -7.36% return over the past three months.

The fund's 1-day return is 0.02%, which is the same as the Nifty 1D Rate Index. However, the fund's 1-year return is 0.00%, while the Nifty 1D Rate Index has a 6.72% return.

Here's a comparison of the fund's performance with the Nifty 1D Rate Index and the CRISIL 1 Year T-Bill Index:

The fund's tracking difference is the difference between its returns and the returns of the Nifty 1D Rate Index. The fund's tracking difference is currently not available.

The fund's performance is ranked 54 out of 539 in its category over the past three months, and 202 out of 497 over the past six months. The best-performing fund in the category has a 13.29% return over the past three months, while the worst-performing fund has a -18.57% return.

Fund Information

Credit: youtube.com, zerodha nifty 1d rate liquid etf kya hai , liquidcase etf kya hai #liquidcase #liquidetf

The Zerodha Nifty 1D Rate Liquid ETF is a great option for those looking for a low-risk investment with liquidity. It follows the "Nifty 1D Rate" as its benchmark, which is calculated using the overnight rate published on the Triparty Repo Dealing System (TREPS).

This ETF invests in overnight instruments such as Tri-Party Repo on Government Securities or T-bills, Reverse repo, Cash & Cash equivalents and G-Sec(s), making it a relatively safe choice. The fund's Net Asset Value (NAV) is ₹106.4891 as on January 15, 2025.

The AUM of the Zerodha Nifty 1D Rate Liquid ETF is ₹3,171.59Cr as on January 15, 2025, indicating a significant amount of investor interest in this fund.

What Are the Constituents of the Liquid?

The Zerodha Nifty 1D Rate Liquid ETF invests in securities that are constituents of the Nifty 1D Rate Index.

The index uses the overnight rate published on the "Triparty Repo Dealing System (TREPS)", platform of CCIL, for computation of index values.

The constituents of the LIQUIDCASE include Tri-Party Repo on Government Securities or T-bills, Reverse repo, Cash & Cash equivalents and G-Sec(s).

Investing in these securities provides a relatively low risk and liquidity, making it a good choice for someone who wants both liquidity and growth in a short period.

What Is the Liquid's Lock-in Period?

Credit: youtube.com, What are Liquid Funds & How Does Liquid Funds Work | Finschool | 5paisa

The LIQUIDCASE, also known as the Zerodha Nifty 1D Rate Liquid ETF, does not have a lock-in period.

This means that you can redeem your units at any time and get the current market value of the fund.

Frequently Asked Questions

What is 1D rate liquid ETF Zerodha?

The Zerodha Nifty 1D Rate Liquid ETF is an exchange-traded fund that invests in government securities and aims to track the NIFTY 1D Rate Index. It offers a low-risk investment option with returns linked to the 1-day treasury bill rate.

Can we invest in liquid funds in Zerodha?

Yes, you can invest in liquid funds through Zerodha, with the minimum investment amount varying based on market supply and demand. Start investing in Zerodha's Liquid ETF with your preferred stock broker today.

Lisa Ullrich

Senior Copy Editor

Lisa Ullrich is a meticulous and detail-oriented copy editor with a passion for precision. With a keen eye for grammar and syntax, she has honed her skills in refining complex ideas and presenting them in a clear and concise manner. Lisa's expertise spans a wide range of topics, from finance and economics to technology and culture.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.