Best Performing Nifty 1D Rate Liquid ETFs in July, 2025 Based on 1Y Returns

Nifty 1D Rate Liquid ETFs are designed to reflect the performance of the overnight money market rate. These ETFs have gained visibility as a category within debt instruments. The table below provides a comparison of various Nifty 1D Rate Liquid ETFs based on their 1-year returns, expense ratios, and tracking errors.

Nifty 1D Rate Liquid ETFs Comparison (Sorted by 1-Year Return)

Note: The data presented above is as of July 15, 2025. Returns, prices, and other metrics are subject to change based on market conditions and fund performance.

1-Month Return Performance: Short-Term Movements

While Nifty 1D Rate Liquid ETFs are typically chosen for their overnight rate tracking and low risk, short-term performance may still interest some investors. The 1-month returns, although marginal, reflect how closely the ETFs mirror the current interest rate environment. For instance, the Zerodha Nifty 1D Rate Liquid ETF delivered the highest 1-month return at 0.39%, followed closely by Kotak and Angel One Nifty 1D Rate Liquid ETF. These short-term returns show consistency, but variations can also be due to operational efficiency and fund management practices.

Expense Ratios: Cost-Efficiency Comparison

Expense ratio is a key parameter in evaluating any passive fund, especially for instruments like liquid ETFs where margins are already minimal. Lower expense ratios typically help retain more of the gross return. In the list above, Mirae Asset offers the lowest expense ratio at 0.16%, while HDFC has the highest at 0.45%. Investors aiming to maximise net returns may find value in comparing this cost carefully before selecting an ETF for idle fund allocation.

Where to Learn More About These ETFs?

ETFs are exchange-traded funds and, like stocks, are held in a demat account. To explore each of the ETFs mentioned above in detail including their latest NAVs, historical performance, and portfolio allocation you can visit Angel One's ETF page. For a broader look at mutual fund offerings and categories, check out Angel One’s mutual fund page.

Read More: These Index Funds Delivered Returns Upto 27%: Do You Own Any?

Conclusion

Nifty 1D Rate Liquid ETFs offer a simple way to access near risk-free returns by mirroring overnight interest rates. While the returns across most funds in this segment remain relatively stable, subtle differences in expense ratios, tracking errors, and fund management practices can impact overall performance.

Reviewing short-term as well as 1-year trends can provide helpful context, but these ETFs are best evaluated in terms of consistency and cost-efficiency rather than just past returns. As always, it’s important to align your investment choices with your financial objectives and liquidity needs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.