Shriram AMC Launches Shriram Nifty 1D Rate Liquid ETF (Growth) with Higher Returns, Seamless Cash Management, and Price Appreciation
Shriram Asset Management Company (Shriram AMC) has announced the launch of Shriram Nifty 1D Rate Liquid ETF (Growth), an open-ended Exchange Traded Fund tracking the Nifty 1D Rate Index. The New Fund Offer (NFO) will be open for subscriptions from July 1, 2024 till July 3, 2024. This ETF offers investors easy cash management with high liquidity, relatively low interest rate risk, and relatively low credit risk. Investors can earn higher returns by investing their idle cash in this ETF seamlessly through their demat account. The Shriram Nifty 1D Rate Liquid ETF (Growth) provides compounding of returns without the need to track daily fractional dividends, with capital gains tax being applicable only on redemption. The fund has lower interest rate volatility as it invests only in the overnight money market, with lower risk due to just a one day exposure to liquid instruments backed by government securities. Along with liquidity and steady returns, Shriram Nifty 1D Rate Liquid ETF (Growth) will also be made eligible as collateral for margin trading, giving greater convenience to active equity investors.
Key Highlights
- Shriram AMC launches Shriram Nifty 1D Rate Liquid ETF (Growth) with NFO opening on July 1, 2024
- The ETF offers higher returns, higher liquidity, and relatively lower risk compared to traditional savings accounts
- Investors can invest through their securities brokers or by depositing physical forms at their nearest CAMS Investor Service Centre
- The fund has lower interest rate volatility and lower credit risk due to overnight money market exposure
- Shriram Nifty 1D Rate Liquid ETF (Growth) will be eligible as collateral for margin trading