SBI Mutual Fund Files Draft for NIFTY 1D Rate Liquid ETF

SBI Mutual Fund has filed the draft scheme information document (SID) with SEBI for a new open-ended exchange-traded fund, SBI NIFTY 1D Rate Liquid ETF – Growth. The scheme aims to replicate the performance of the NIFTY 1D Rate Index, which reflects overnight borrowing rates. 

It is classified under the Exchange Traded Fund (ETF) category and carries a relatively low interest rate and credit risk.

Investment Objective 

The scheme’s objective is to generate returns, before expenses, that correspond to the performance of the NIFTY 1D Rate Index, subject to tracking error. It follows a passive investment strategy with no active stock selection. The fund will invest at least 95% of its assets in overnight instruments like Tri-Party Repos, Government Security Repos, and Reverse Repos. The remaining allocation, up to 5%, can be in cash and cash equivalents.

NFO Details

Units will be offered at ₹1,000 each during the New Fund Offer (NFO) period. The NFO will remain open for a minimum of three working days. Post-NFO, the scheme will reopen for continuous sale and repurchase within five business days from allotment.

Listing and Redemption

Units will be listed on NSE and BSE. Investors can buy or sell units through the exchange in lots of one unit. Direct transactions with the fund are allowed for market makers and large investors, subject to a minimum transaction value of ₹25 crore in creation unit sizes of 500 units.

Exit Load and NAV

There is no exit load. NAV will be published on the AMFI and SBI Mutual Fund websites by 11 PM on business days. Indicative NAV (iNAV) will be disclosed at least four times daily during market hours.

Read More: Best Focused Mutual Funds To Invest In 2025!

Fund Manager

The scheme will be managed by Tejas Soman, who has over 9 years of experience in the financial sector and currently manages multiple debt-oriented schemes at SBI Mutual Fund.

Conclusion

The SBI NIFTY 1D Rate Liquid ETF – Growth has completed its regulatory filing process with SEBI and is positioned for launch. Following the NFO, the scheme will be available for transactions on stock exchanges and through direct channels as per defined criteria. 

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.