The asset under management of the recently launched liquid ETF of Zerodha Fund House has increased to over ₹150 crore in just eight trading sessions after its new fund offer. In three months after launch, the fund house has managed to garner an AUM of ₹426 crore from three schemes listed on exchanges.

One of the recent entrants into the mutual fund space, Zerodha MF launched Nifty 1D Rate Liquid ETF which was open for subscription between January 8 and 12. It was listed on stock exchanges on January 24. On Monday, the ETF had an AUM of ₹155 crore. In fact, it is the only liquid ETF with growth net asset value.

Vishal Jain, CEO, Zerodha Fund House said this product solves many pain points for investors using Liquid ETFs and was well received by investors. “We are receiving queries on the product from across the spectrum of investors including top PMS’, family offices and other large investors. It seems as if the market was waiting for a product like this,” he added.

Liquidcase

Dubbed as Liquidcase, more than 8,000 retail individuals have participated in the new fund offer with equal mix of institutions and individuals.

Most of the current liquid funds ETFs keep price constant and pay the returns to investors in the form of additional units in the demat account every month or fortnight and another option is to credit the dividend in the bank account in order to NAV constant.

Liquidcase NAV keeps changing as the period of investment progresses depending on the returns of the fund, just like in other ETFs.

The Zerodha Nifty LargeMidcap 250 index fund has an asset of ₹224 crore and has one of the lowest expense ratio of 0.25 per cent with minimum investment of ₹100. The fund invests equally between the top 100 large companies and the next 150 mid-cap companies.

Similarly, the Zerodha ELSS Tax Saver Nifty LargeMidcap 250 index fund, which has an AUM of ₹47 crore, comes with three-year lock-in and investment of up to ₹1.50 lakh can be deducted from taxable income.

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