Edelweiss Mutual Fund Files Draft Papers for Nifty 1D Rate Liquid ETF with SEBI

Edelweiss Mutual Fund has filed draft papers with the Securities and Exchange Board of India (SEBI) for the launch of Edelweiss Nifty 1D Rate Liquid ETF – Growth. The draft Scheme Information Document is dated August 12, 2025, and has been submitted for approval.

Scheme Objective

The investment objective is to generate returns, before expenses, in line with the performance of the Nifty 1D Rate Index, subject to tracking errors. The index tracks returns generated by overnight lending in government securities and Treasury Bills through the Triparty Repo Dealing System (TREPS). 

There is no assurance that the investment objective will be achieved.

Risk Classification

Both the scheme and its benchmark are placed under the low risk category. As a passive fund, the ETF will invest primarily in instruments that replicate the underlying index, without active stock selection.

Pricing and Units

During the New Fund Offer (NFO), units will be issued at ₹1,000 each. The minimum application amount is ₹5,005, and additional investments can be made in multiples of ₹1. After the NFO, units will be available at the applicable Net Asset Value (NAV) and listed on NSE and BSE for trading.

Exit and Liquidity

The scheme will have no exit load. Units can be traded on the exchanges in lots of one unit. Large investors and authorised participants can transact directly with the fund in creation unit sizes, with a minimum threshold of ₹25 crore. For market makers, the proposed creation unit size is 500 units.

Asset Allocation

The ETF will allocate 95-100% of assets to securities replicating the Nifty 1D Rate Index and up to 5% to money market instruments, cash equivalents, or liquid schemes. Proceeds raised during the NFO are required to be deployed within 30 business days of allotment, as per SEBI regulations.

Read more: Groww MF Launches Multi Asset Allocation Fund NFO! 

Conclusion

The filing outlines a new ETF that seeks to track overnight indexed returns through short-term debt instruments. Its launch will depend on SEBI’s review and final clearance.

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 are subject to market risks, read all the related documents carefully before investing.