ICICI Prudential Nifty 1D Rate Liquid ETF: An Insight into the Scheme’s Objective and Key Features

Introduction

The ICICI Prudential Nifty 1D Rate Liquid ETF – Growth introduced exchange-traded fund (ETF) focused on providing short-term savings with high liquidity and low risk. This scheme primarily targets investors seeking moderate returns with a lower risk profile by tracking the Nifty 1D Rate Liquid Index. Recently, ICICI Prudential Asset Management has filed the draft scheme information document with SEBI, indicating the scheme’s compliance with regulatory standards and ensuring transparency for potential investors.

Objective of the Scheme

The primary objective of the ICICI Prudential Nifty 1D Rate Liquid ETF – Growth is to deliver returns before expenses that closely follow the Nifty 1D Rate Liquid Index. However, investors should note that achieving the exact index return isn’t guaranteed due to potential tracking errors. 

Name of the Scheme

Scheme Name: ICICI Prudential Nifty 1D Rate Liquid ETF – Growth
This ETF is an open-ended scheme under the ICICI Prudential Mutual Fund umbrella, specifically structured as an ETF tracking the Nifty 1D Rate Liquid Index. It aims to provide low-interest and credit risk exposure.

Fund Manager

The scheme is managed by Mr. Darshil Dedhia and Mr. Nikhil Kabra, both of whom bring extensive experience in managing debt and ETF products at ICICI Prudential Asset Management Company. Their expertise supports the fund’s strategy to replicate the index while minimizing tracking errors.

Asset Allocation

The asset allocation structure under this scheme is straightforward, with:

• 95-100% of assets invested in instruments that constitute the Nifty 1D Rate Liquid Index.
• 0-5% in government securities or Treasury bills with a maturity of up to 30 days, mainly for margin and collateral purposes.

Key Information

• Benchmark: Nifty 1D Rate Liquid Index
• Liquidity and Listing: The units of this ETF will be listed on both BSE and NSE, allowing investors to buy or sell the units on trading days.
• NAV Disclosure: The NAV will be updated at the close of each business day, accessible on the AMC website and AMFI’s portal.
• Load Structure: There is no exit load for units traded on the secondary market; brokerage fees are borne by investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.