NFO: Nippon India Nifty 1D Rate Liquid ETF To Open on July 16th
By Ankur Chandra | Published at: Jul 15, 2025 10:44 AM IST
Mumbai, July 15, 2025 – There is another ETF in the ultra short category as Nippon India Mutual Fund has announced the launch of the Nippon India Nifty 1D Rate Liquid ETF – Growth. It is an open-ended exchange-traded ETF that aims to replicate the performance of the Nifty 1D Rate Index with low interest rate and credit risk exposure. The ETF shall serve investors looking to park idle funds for a very short period.
The New Fund Offer (NFO) opens on July 16, 2025, and closes on July 18, 2025, with listing expected within five working days from allotment.
Key Offer Details
| NFO Opens | NFO Closes | Scheme Re-opens | Offer Price |
|---|---|---|---|
| July 16, 2025 | July 18, 2025 | On or before July 30, 2025 | ₹1,000 per unit |
Investment Objective & Strategy
The ETF is designed to provide current income with high liquidity by investing primarily in Tri-Party Repo on G-Secs, T-bills, and Reverse Repo instruments, replicating the Nifty 1D Rate Index before expenses. The fund does not invest in derivatives, securitized debt, overseas securities, ReITs, InvITs, or corporate debt repo, as per SEBI guidelines.
Asset Allocation Strategy:
| Instruments | Allocation (% of AUM) | Risk Profile |
|---|---|---|
| Securities constituting Nifty 1D Rate Index | 95–100% | Low |
| Cash & Money Market Instruments | 0–5% | Low |
Liquidity & Listing
- The ETF will be listed on NSE for secondary market trading.
- Creation Unit Size: 2,500 units and in multiples of 1 unit thereafter.
- Minimum Application Amount during NFO: ₹1,000 and in multiples of ₹1.
- Direct transactions with the AMC for creation/redemption allowed for Large Investors (₹25 crore+) and Authorised Participants.
Expense Ratio & Loads
- Estimated Total Expense Ratio (TER): Up to 1.00% of daily net assets.
- Exit Load: Nil
- Swing Pricing & Side Pocketing: Not applicable.
- Segregated Portfolio: Enabled in line with SEBI provisions.
Benchmark & Fund Managers
- Benchmark Index: Nifty 1D Rate Index
- Fund Managers:
- Mr. Vikash Agarwal – Senior Fund Manager (19+ years of experience)
- Mr. Vivek Sharma – Fund Manager (18+ years of experience)
Key Regulatory Compliance
- Compliant with SEBI Master Circular dated June 27, 2024, including tracking error (annualized) capped at 1.25%.
- Investments restricted to low-risk, short-maturity debt instruments.
- No investment in AT1/AT2 bonds, derivatives, unlisted NCDs, or instruments with credit enhancements.
Who Can Invest?
Eligible investors include:
- Resident individuals, NRIs, corporates, trusts, banks, insurance companies, and provident/superannuation funds (subject to eligibility).
- Foreign Portfolio Investors (FPIs) in compliance with FEMA norms.
- The scheme is not open to OCBs or investors from FATF-designated Non-Compliant Countries and Territories (NCCTs).
How to Apply
Applications can be submitted via:
- Nippon India Mutual Fund website: https://mf.nipponindiaim.com
- Designated Investor Service Centers (DISCs)
- Stock Exchange mechanisms
- Digital platforms and MF Utility
ASBA facility and switch-in from existing schemes (excluding ETFs) are also available during NFO.
About the Fund House
Nippon India Mutual Fund, one of India’s largest AMCs, offers a diversified range of equity, debt, and hybrid products. The fund house is sponsored by Nippon Life Insurance, Japan’s leading private life insurer.
REF: https://portal.amfiindia.com/spages/14259.pdf
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