DSP Nifty 1D Rate Liquid ETF

About DSP Nifty 1D Rate Liquid ETF.

• DSP Nifty 1D Rate Liquid ETF is an open-ended fund scheme invested in tri-party REPO launched by DSP Mutual fund house.
• The ETF invests in low-risk overnight securities like collateralised borrowing and lending obligations (CBLO), repo and reverse repo securities.
• The ETF was launched on March 14, 2018.
• DSP Nifty 1D Rate Liquid ETF’s assets under management (AUM) stood at ₹1,135.42 crore as of June 30, 2024.
• Anil Ghelani and Diipesh Shah are the managers of the DSP Nifty 1D Rate Liquid ETF.
• As the ETF units are listed on the NSE and BSE, one can invest by buying units through a demat account.
• The ETF units can be bought and sold, just like equity stocks, during the usual market hours.

Investment Objective & Benchmark

• The DSP Nifty 1D Rate Liquid ETF aims to provide returns that closely correspond to the overnight call money market rates as measured by the Nifty 1D Rate Index.
• It is benchmarked against the Nifty 1D Rate Index.
• Investors can expect predictable returns as the ETF primarily invests in fixed-income securities with known maturity dates and coupon payments.
• DSP Nifty 1D Rate Liquid ETF is suitable for investors looking for low-risk investments with moderate returns.
• A low risk investment instrument, the ETF is designed for those seeking stable income and capital preservation over the investment horizon.
• The ETF offers diversification within the short-term interest rate segment, helping to spread risk.
• The ETF caters to short-term liquidity needs, giving investors an option to adjust their asset allocation without committing to longer-term investments.

Asset Allocation & Portfolio Composition

• The ETF holds 99.6% in TREPS/Reverse Repo Investments in this fund.
• DSP Nifty 1D Rate Liquid ETF credit profit 100% in cash & cash equivalents.
• The ETF has given a 6.49% return in a year as of June 28, 2024.
• Since its inception, the fund has delivered a return of 4.7%. Returns can fluctuate based on changes in interest rates and market conditions.