HDFC Mutual Fund Launches HDFC Nifty 1D Rate Liquid ETF

HDFC Asset Management (HDFC AMC), investment manager to HDFC Mutual Fund (HDFC MF), has launched the HDFC Nifty 1D Rate Liquid ETF (the Scheme) to provide investment returns that, before expenses, correspond to the returns.

The new fund offer, or NFO, of the scheme is open for subscription and will close on August 23, 2023.

The investment objective of the scheme is to invest in Tri-Party Repos in Government Securities or Treasury Bills (TREPS).

Investors with a demat account can park their idle funds in the Scheme and earn returns while they await better trading opportunities. In addition, scheme units can be used as collateral for margin trading^. The Scheme provides an attractive investment avenue for investors with a demat account, allowing them to earn returns with low risk while enjoying the benefits of liquidity.

The Scheme can be used by active traders, Securities Brokers, PMS and AIFs, Family Offices etc. to manage surplus cash and earn returns on collateral pledged as margin with no MtM risk, as investment is in overnight TREPs.

Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company said, “HDFC Mutual Fund continues to expand its offerings to provide diversified investment solutions with our ‘Investor First’ focus. The HDFC NIFTY 1D Rate Liquid ETF illustrates our commitment to continuously meet investor needs, as it allows investors to easily and effectively manage surplus cash.”