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Shriram Asset Management Company will launch Shriram Nifty 1D Rate Liquid ETF (Growth), which will track the Nifty 1D Rate Index.
The New Fund Offer will be open between July 1 and 3.
The Shriram Nifty 1D Rate Liquid ETF (Growth) offers investorseasy cash management with high liquidity, relatively low interest rate risk and credit risk. They can earn higher returns by investing their idle cash in this ETF seamlessly through their demat account.
The growth plan delivers compounding of returns without the need to track daily fractional dividends, with capital gains tax being applicable only on redemption.
Lower risk
The fund will invest only in the overnight money market and carries lower risk due to just a one-day exposure to liquid instruments backed by government securities. The ETF will also be made eligible as collateral for margin trading, giving greater convenience to active equity investors.
Kartik Jain, MD & CEO, Shriram AMC, said the ETF offers an effective cash management vehicle that combines the advantages of better returns, higher liquidity and relatively lower risk. Active traders will get the added benefit of margin pledge, he said.
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