What is Shriram AMCs New Liquid ETF Can Deliver Higher Returns than your Savings Account?
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NFO will open for subscription on Monday, July 1, 2024.
The fund is a stable, liquid alternative to traditional savings accounts along with higher returns at relatively low credit risk.
Shriram Asset Management Company (Shriram AMC) announced the launch of Shriram Nifty 1D Rate Liquid ETF (Growth), an open-ended Exchange Traded Fund tracking the Nifty 1D Rate Index.
Kartik L Jain, MD & CEO, Shriram AMC
The Shriram Nifty 1D Rate Liquid ETF (Growth) New Fund Offer will be open for subscriptions from July 1, 2024 till July 3, 2024. Investors can apply through their securities brokers or by depositing physical forms at their nearest CAMS Investor Service Centre.
The Shriram Nifty 1D Rate Liquid ETF (Growth) provides investors with easy cash management with high liquidity, relatively low interest rate risk and relatively low credit risk. They can earn higher returns by investing their idle cash in this ETF seamlessly through their demat account, instead of leaving it in their savings account. The Growth plan delivers compounding of returns without the need to track daily fractional dividends, with capital gains tax being applicable only on redemption. Returns can easily be tracked through the growth NAV published daily on www.shriramamc.in/SNifty1dETF.
The fund has lower interest rate volatility as it invests only in the overnight money market, with lower risk due to just a one day exposure to liquid instruments backed by government securities. Along with liquidity and steady returns, Shriram Nifty 1D Rate Liquid ETF (Growth) will also be made eligible as collateral for margin trading giving greater convenience to active equity investors.
Kartik Jain, MD & CEO, Shriram AMC, said,“At Shriram AMC, we are constantly striving to innovate and provide investment products that fit the changing demands of todays clients. With the introduction of the Shriram Nifty 1D Rate Liquid ETF (Growth), we offer an effective cash management vehicle that combines the advantages of better returns, higher liquidity and relatively lower risk. This ETF is ideal for investors wishing to increase their returns on idle capital while reducing risk by investing in stable and secure overnight products. Active traders will get the added benefit of margin pledge. Given the present financial landscapes growing desire for flexible and secure investment solutions, we believe this fund will play an important role in assisting clients in meeting their financial objectives.”
In summary, the USP of the Shriram NIFTY 1D Liquid ETF (Growth) includes the Upside of higher returns vs. savings, Seamless cash management with margin pledge, and Price appreciation in NAV with Growth plan. The NFO campaign theme is captured in the tag line: Savings bhi, Margin bhi… Growth pe growth.
The minimum subscription during the NFO is Rs. 1000 or multiples thereof, and the fund managers will be Mr. Deepak Ramaraju and Ms. Gargi Bhattacharyya Banerjee.
About Shriram Asset Management Company
Shriram Asset Management Company Limited, part of the Shriram Group, received approval from SEBI to act as the Asset Management Company of Shriram Mutual Fund, vide registration no. MF/017/94/4. As at March 31, 2024, the AUM for the company stood at Rs. 535.76 crores, of which 65%, i.e. Rs. 349.68 crore was in equity funds. The growth in AUM of the company in the financial year from March 31, 2023 is 97%. Shriram AMC offers a mixed product line comprising hybrid, equity, and debt funds so that customers can meet their key goals and objectives.
For more information, please visit www.shriramamc.in.
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