HDFC Nifty 1D Rate Liquid ETF NFO: Everything you need to know

21 Aug 2023 , 10:06 AM

HDFC Mutual Fund is launching NFO under its “ETF category”, named as HDFC Nifty 1D Rate Liquid ETF. This open-ended fund will 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.

Investment strategy: HDFC NIFTY 1D Rate Liquid ETF will invest in Tri-Party Repos in Government Securities or Treasury Bills (TREPS). The Scheme may also invest in Overnight/ Liquid Scheme(s) & other money market instruments, in compliance with regulations to meet liquidity and expense requirements.

Asset allocation: The scheme will predominantly invest TREPS covered by the NIFTY 1D Rate Index.

Who should invest?

Investors with low risk appetite and want to invest for liquidity in ETF should invest in HDFC Nifty 1D Rate Liquid ETF. 

Risk associated: Low level of risk.

Benchmark: NIFTY 1D Rate Index (TRI).

Fund Managers: Mr. Vikash Agarwal.

The NFO is available for subscription from August 18 to August 23. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan. The minimum subscription amount is Rs 5000/- and in multiples of any amount thereafter. 

It offers Regular Plan and Direct Plan. Each plan offers Growth and Income options. Click here to invest in HDFC Nifty 1D Rate Liquid ETF.