On Wednesday, Nithin Kamath, the CEO of Zerodha, revealed LIQUIDCASE, an ETF offered by Zerodha AMC. He claimed that investors who don't want to "bother about dividends, taxes" were taken into consideration when designing the product.
"LIQUIDCASE, the inaugural ETF in India featuring a growth NAV from @ZerodhaAMC, debuted today under the same ticker. When we were designing the product, our goal was to provide investors with a straightforward option free from concerns about taxes, dividends, and other related matters.
"There are no dividends with LIQUIDCASE, and the returns in the ETF are added to the NAV in a manner similar to growth mutual funds. With X platform (previously Twitter), Kamath stated, "This makes it easier for you to track your returns and there are no hassles with fractional units and figuring out your taxes."
The return profile of the ETF, which tracks the Nifty 1D Rate Index, will resemble that of overnight mutual funds. Thus, higher than the interest rates on most savings bank accounts," Kamath continued.
The investment has a comparatively low credit risk and low interest rate risk because it is made in short-term debt instruments backed by treasury bills. The fund might make it easier to move between cash and stock inside the same settlement, which would improve cash management and make it appropriate for all kinds of investors.
It is run by Apurv Parikh, a seasoned finance industry executive.
Important information:
● Type: Other - Exchange Traded Fund (ETF)
● The Nifty 1D Rate Index is the benchmark.
● Apurv Parikh, Manager of Debt Fund
● Possible listing date: January 24, 2024
● Rs 500 is the minimum application amount.
