Nippon India Mutual Fund Files Draft for Nifty 1D Rate Liquid ETF - Growth

Nippon India Mutual Fund has filed draft documents for a new exchange-traded fund(ETF) named Nippon India Nifty 1D Rate Liquid ETF - Growth. It is an open-ended scheme that will replicate or track the performance of the Nifty 1D Rate Index. The scheme is to maintain relatively low credit and interest rate risk.

Structure and Investment Focus

The ETF will invest primarily in Tri-Party Repo on Government Securities, Treasury Bills, and Repo/Reverse Repo instruments, in line with the benchmark index. The scheme's asset allocation ranges from 95% to 100% in securities forming part of the Nifty 1D Rate Index and up to 5% in cash equivalents and other permitted money market instruments.

Fund Offer and Pricing

During the New Fund Offer (NFO), units will be offered at ₹1,000 per unit. The scheme reopens for continuous sale and repurchase shortly after the NFO closes. There is no exit load, and investors can buy or sell units on the National Stock Exchange (NSE).

Minimum Investment and Redemption 

Retail investors can transact in as low as 1 unit on the exchange. For large investors and authorised participants, direct transactions with the fund require a minimum execution value above ₹25 crore, except for specified exemptions such as EPFO and other recognised funds till August 31, 2025. Units can be created or redeemed in blocks of 2,500 units or more.

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Risk and Expense Structure

The scheme falls under Risk Class A-I, indicating a low interest rate and credit risk. It does not invest in derivatives, overseas securities, corporate debt, or structured obligations. The total expense ratio (TER) will be capped at 1%, excluding additional permissible charges under SEBI regulations.

Listing and NAV Disclosure

Units will be listed on NSE within 5 working days of allotment. NAVs will be disclosed daily by 11:00 PM, and the indicative NAV will be updated during market hours.

Conclusion

The draft scheme is currently under regulatory review. Listing and operational details will follow upon approval and finalisation. The Scheme is an open-ended scheme that will replicate or track the performance of the Nifty 1D Rate Index. The scheme is to maintain relatively low credit and interest rate risk.

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.