NFO: SBI Nifty 1D Rate Liquid ETF-Growth Fund To Open on August 4

Mumbai, July 30, 2025 – SBI Mutual Fund, India’s largest fund house by AUM, is set to launch the SBI NIFTY 1D Rate Liquid ETF – Growth, an open-ended Exchange Traded Fund (ETF) tracking the NIFTY 1D Rate Index, offering a low-risk investment avenue for short-term parking of surplus funds for investors as well as businesses.

The New Fund Offer (NFO) opens on August 4, 2025, and will close on August 7, 2025. Units will be priced at ₹1,000 during the NFO and subsequently traded on NSE and BSE. The scheme is expected to reopen for continuous subscriptions within five business days from allotment.

Key Features of SBI NIFTY 1D Rate Liquid ETF

SBI NIFTY 1D Rate Liquid ETF is an exchange-traded fund (ETF) that has been created as an open-ended scheme, tracking the NIFTY 1D Rate Index (Total Return Index). It has a low-risk rating and it will list on NSE and BSE, sold at 1,000 rupees per unit in its NFO between Aug. 4 and 7, 2025. The least amount is 5000 rupees, and there is no exit load. It has a Growth NAV option and will have NAV declared daily at 11 PM, with the start of allotment within five business days.

Asset Allocation Strategy

ETF will primarily invest in Trip Party REPOs, Reverse Repos and securities of overnight maturities, which underlie SBI NIFTY 1D Rate. Allocation of these instruments is between 95-100 percent of any investment, including up to 5 percent in cash equivalents. It does not use derivatives, corporate debt, foreign securities, ADRs/GDRs or unlisted securities. On average, in normal market conditions, the tracking difference is expected to be within 1.25 percent a year.

Liquidity & Redemption

Shares of ETFs can be traded on stock markets, similar to any listed stock, in multiples of 1 unit. Market makers and large investors (more than 25 crores) have the option of buying or selling directly with the AMC in lots of 500 units. Until August 31, 2025, EPFOs and other retirement funds will be excluded from this limit. It is also not possible to switch between schemes, and all transactions have to be done through a demat account.

Fund Manager & Management Strategy

The fund will be managed by Mr. Jignesh Shah, a CFA with over 25 years of experience across A.K. Stockmart, Incred Capital, and Trust Financial. He also manages SBI Nifty 10 Yr G-Sec ETF and SBI Nifty 1D Rate Liquid ETF – IDCW.

SBI MF has clarified that this is not a minor variation of an existing scheme, and tracking will be done using a passive indexing approach, avoiding active security selection.

Fund Expenses

The Total Expense Ratio (TER) of the fund may reach up to 1.00 per cent of the daily net assets. Investments by B-30 cities would be subject to an extra 0.30 percent, and there is a 0.05 percent extra owing to the scheme types. Exit load does not exist. Nevertheless, the investor must pay separate brokerage fees and GST, and these are not incorporated in the allowable TER range.

About the Index

The NIFTY 1D Rate Index reflects returns of market participants lending in overnight Tri-Party Repo markets. The index is computed using rates published by CCIL and has a base value of 1,000 from January 3, 2011.

About SBI Mutual Fund

SBI Mutual Fund, a joint venture between State Bank of India and AMUNDI (France), is India’s largest asset manager. With a presence across over 250 locations and a wide ETF basket including SBI Nifty 50 ETF, SBI Gold ETF, and SBI BSE Sensex ETF, the fund house has consistently offered low-cost, passive and active strategies across investor segments.

REF: https://portal.amfiindia.com/spages/14285.pdf

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