Shriram Asset Management Company (Shriram AMC) announced the launch of its growth liquid fund – Shriram Nifty 1D Rate Liquid ETF (Growth), an open-ended Exchange Traded Fund, tracking the Nifty 1D Rate Index.
The Shriram Nifty 1D Rate Liquid ETF (Growth) New Fund Offer will be open for subscriptions from July 1, 2024 till July 3, 2024.
Minimum subscription for NFO
The minimum subscription during the NFO is Rs 1,000 or multiples thereof, and the fund managers will be Deepak Ramaraju and Gargi Bhattacharyya Banerjee.
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Investors can apply through their securities brokers or by depositing physical forms at their nearest CAMS Investor Service Centre.
“The Shriram Nifty 1D Rate Liquid ETF (Growth) provides investors with easy cash management with high liquidity, relatively low interest rate risk and relatively low credit risk. They can earn higher returns by investing their idle cash in this ETF seamlessly through their demat account, instead of leaving it in their savings account,” Shriram AMC said.
The Growth plan delivers compounding of returns without the need to track daily fractional dividends, with capital gains tax being applicable only on redemption.
Shriram Nifty 1D Rate Liquid ETF (Growth) key features
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, it said.
Better returns, higher liquidity and relatively lower risk
Kartik Jain, MD & CEO, Shriram AMC, said, “At Shriram AMC, we are constantly striving to innovate and provide investment products that fit the changing demands of today’s clients. With the introduction of the Shriram Nifty 1D Rate Liquid ETF (Growth), we offer an effective cash management vehicle that combines the advantages of better returns, higher liquidity and relatively lower risk.”
This ETF is ideal for investors wishing to increase their returns on idle capital while reducing risk by investing in stable and secure overnight products, Jain said.
“Active traders will get the added benefit of margin pledge. Given the present financial landscape’s growing desire for flexible and secure investment solutions, we believe this fund will play an important role in assisting clients in meeting their financial objectives,” the CEO said.
In summary, the USP of the Shriram NIFTY 1D Liquid ETF (Growth) includes the Upside of higher returns vs. savings, Seamless cash management with margin pledge, and Price appreciation in NAV with Growth plan. The NFO campaign theme is captured in the tag line: Savings bhi, Margin bhi… Growth pe growth.