ICICIPRAMC - ICICILIQ

About ICICI Prudential BSE Liquid Rate ETF

• The ICICI Prudential BSE Liquid Rate ETF is an exchange-traded fund (ETF) that focuses on money market products such as treasury bills, commercial papers, and certificates of deposit.
• The scheme is offered by the ICICI Prudential Mutual Fund House.
• The ETF was launched on September 25, 2018.
• The fund manager of the ICICI Prudential BSE Liquid Rate ETF is Rohan Maru.
• The scheme’s assets under management (AUM) stood at ₹3,700.43 crore, as of July 31, 2024.
• ETF units are listed on the NSE and BSE platforms allowing for easy investment.
• Retail investors can buy all units directly from a demat account with a registered broker.

Investment Objective & Benchmark

• The primary objective of the ICICI Prudential BSE Liquid Rate ETF is to closely mirror the performance of the underlying index, subject to minor tracking errors.
• It is benchmarked against the S&P BSE Liquid Rate Index.
• The index includes money market instruments, especially those with very short maturities of up to 91 days.
• The liquidity in the underlying money market instruments ensures that the ETF can meet redemption requests with ease.
• Investors can earn returns on idle funds while also remaining liquid to benefit from attractive investment opportunities.
• The ICICI Prudential BSE Liquid Rate ETF has a low-risk profile.
• The ETF is suitable for investors seeking stable income and capital preservation over the investment horizon.
• Bond ETFs can offer tax efficiency benefits, including potentially lower tax rates on capital gains and the possibility of indexation benefits.
• This ETF invests in a mix of money market instruments from various issuers. This diversification helps to minimise risk.
• ICICI Prudential BSE Liquid Rate ETF allows ordinary investors to gain passive exposure to benchmark bond indices in a cost-effective way.

Asset Allocation & Portfolio Composition

• The fund allocation of ICICI Prudential BSE Liquid Rate ETF comprises around 99.54% in TREPS/Repo and 0.46% in cash equivalents.
• Since its inception, the fund has delivered a return of 4.75% to its investors.
• In the last one year, ICICI Prudential BSE Liquid Rate ETF delivered returns of 6.34% compared to benchmark returns of 7.12%, as of July 31, 2024.