The new fund offer or NFO of the scheme will be open for subscriptions from July 1 and will close on July 3.
The objective of the scheme is to invest in Tri Party Repo on 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 error.
The performance of the scheme will be benchmarked against Nifty 1D Rate Index. The minimum application amount will be Rs 1,000 and in multiples of Re 1 thereafter. The fund managers will be Deepak Ramaraju and Gargi Bhattacharyya Banerjee.
The scheme will invest 95-100% in Tri-Party Repo on Government Securities or T-bills, Reverse repo & Cash and Cash equivalents and 0-5% in other money market instruments with a residual maturity of upto 30 days.
The maximum total expense ratio (TER) permissible under Regulation 52(6)(c)(i) and (6)(a) is upto 1%. The fund is suitable for investors who are seeking a stable, liquid alternative to traditional savings accounts and want safety and liquidity for short-term funds.The principal invested in the scheme will be at “low” risk according to the riskometer of the scheme. “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. 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,” said Kartik Jain, MD & CEO, Shriram Mutual Fund.
