SBIAMC - LIQUIDSBI

About SBI Nifty 1D Rate Liquid ETF

• SBI Nifty 1D Rate Liquid ETF is an open-ended liquid debt scheme launched by SBI Mutual fund house.
• The fund invests in government securities and treasury bills with a maximum maturity period of three months.
• The fund was launched on October 27, 2023.
• Tejas Soman is the manager of the SBI Nifty 1D Rate Liquid ETF.
• SBI Nifty 1D Rate Liquid ETF has assets under management (AUM) that stood at ₹27.18 crore, as of June 30, 2024.
• 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, just like equity stocks, during the usual market hours.

Investment Objective & Benchmark

• The investment objective of the SBI Nifty 1D Rate Liquid ETF is to invest in Tri-Party Repos in Government Securities or Treasury Bills (TREPS).
• It is benchmarked against the Nifty 1D Rate Index which measures the returns generated by market participants lending in the overnight market.
• The SBI Nifty 1D Rate Liquid ETF aims to provide returns that closely correspond to the overnight call money market rates, measured by the Nifty 1D Rate Index.
• SBI Nifty 1D Rate Liquid ETF is suitable for investors looking for low-risk investments with moderate returns.
• The ETF offers stable income and capital preservation over the investment horizon.
• The ETF provides investors with an opportunity to invest in a low-risk, highly liquid instrument tracking short-term interest rates. It serves as a useful tool for managing short-term liquidity and parking funds.

Asset Allocation & Portfolio Composition

• The asset allocation of SBI Nifty 1D Rate Liquid 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 5.67%. Returns can fluctuate based on changes in interest rates and market conditions.