The new fund offer or NFO of the scheme is open for subscription and will close on August 23.
The investment objective of the scheme is to invest in tri-party repos in government securities or treasury bills (TREPS). The scheme aims to provide investment returns that, before expenses, correspond to the returns of the NIFTY 1D Rate Index, subject to tracking errors.
The performance of the scheme will be benchmarked against NIFTY 1D Rate Index (TRI).
The scheme will be managed by Vikash Agarwal. The scheme’s riskometer shows that the scheme falls in the ‘low’ category
The scheme will invest 95-100% in tri-party repos in government securities or treasury bills (TREPS) and 0-5% in units of overnight/ liquid schemes, money market instruments (with maturity not exceeding 91 days), cash & cash equivalents. The minimum application amount will be Rs 5,000 per application and in multiples of Re 1 thereafter. There shall be no plans / options under the scheme. The scheme will endeavor to declare IDCW at a daily frequency (record date shall be every business day and the holiday immediately preceding a business day), subject to availability of distributable surplus to keep the NAV constant.The scheme is suitable for investors who are seeking current income with a high degree of liquidity.
Should you invest? ETMutualFunds always ask investors to invest in an NFO only if it offers something unique – that is, some investment option that is not available in the market or adding something to the existing available option.
There are four similar schemes in the market. Two schemes – DSP NIFTY 1D Rate Liquid ETF, and Nippon India ETF Nifty 1D Rate Liquid BeES – have completed more than five years. Two schemes – Kotak Nifty 1D Rate Liquid ETF, and Mirae Asset Nifty 1D Rate Liquid ETF- are relatively new.
