ABSL Liquid ETF

About Aditya Birla Sun Life CRISIL Overnight Fund AI ETF

• ABSL Crisil overnight AI ETF is an open-ended liquid scheme launched by Aditya Birla Sun Life Mutual fund house.
• The fund invests in overnight securities, including commercial papers, treasury bills and certificates of deposit.
• The fund uses AI-driven strategies to optimise returns.
• The fund was launched on March 14, 2023.
• ABSL Crisil overnight AI-ETF has assets under management (AUM) stood at ₹38.42 crore, as of June 30, 2024.
• This ETF is considered to have a low-risk profile due to the short-term nature and high credit quality of the securities it holds.
• Sanjay Pawar and Sunaina da Cunha are the fund managers of the Aditya Birla Sun Life Crisil Overnight AI-ETF.
• As the ETF units are listed on the NSE, BSE one can invest by buying units through a demat account.
• The ETF units can be bought and sold during the usual market hours, just like equity stocks.

Investment Objective & Benchmark

• The Investment objective of ABSLLIQUID ETF aims to provide returns that closely correspond to the total returns of the underlying index.
• It is benchmarked against the CRISIL Overnight Index, which features Tri-party repo securities (TREPS) with a one-day maturity.
• This ETF invests primarily in overnight securities, which are very short-term debt instruments with maturities typically of one day.
• The ETF offers high liquidity as it invests in overnight securities.
• ABSLLIQUID is suitable for investors looking for a very short-term investment option for managing surplus funds and optimising cash holdings with minimal risk.
• Returns from overnight funds are typically treated as short-term capital gains and taxed accordingly.

Asset Allocation & Portfolio Composition

• The asset allocation of this AI-ETF comprises around 100% in cash & cash equivalents.
• This ETF invests in money market instruments such as treasury bills, certificates of deposit, commercial papers and other short-term debt instruments that provide liquidity and safety.
• Since its inception, the fund has delivered a return of 6.33%. and a return of 6.42% in one year.
• Returns can fluctuate based on changes in interest rates and market conditions.