'Better than most savings bank account interest rates': Nithin Kamath on Zerodha AMC's LIQUIDCASE ETF

Zerodha CEO Nithin Kamath on Wednesday announced Zerodha AMC's ETF offering LIQUIDCASE. He said the product was devised keeping in mind investors who don't want to "bother about dividends, taxes".

"LIQUIDCASE, India's first ETF with a growth NAV from @ZerodhaAMC just listed today with the same symbol. When we were thinking about the product, we wanted to offer something simple where investors didn't have to bother about dividends, taxes etc.

"So, the way LIQUIDCASE works is simple: the returns in the ETF will be added to the NAV just like growth mutual funds, and there are no dividends. This makes it easier for you to track your returns, and there are no hassles with fractional units and figuring out your taxes," said Kamath on X platform (formerly Twitter).

"The ETF tracks the Nifty 1D Rate Index, and it's return profile will be similar to that of overnight mutual funds. So, better than most savings bank account interest rates," added Kamath.

As the investment is made in short-term debt products backed by treasury bills, it carries a relatively low credit risk and low-interest rate risk. The fund may facilitate a seamless transition between equity and cash within the same settlement, thereby facilitating better cash management and, hence, suitable for all types of investors. 

It is managed by Apurv Parikh, a seasoned professional in the financial industry. 

Key details: 

● Category: Other - ETF (Exchange Traded Fund) 

● Benchmark: The Nifty 1D Rate Index 

● Debt Fund Manager: Apurv Parikh 

● Tentative listing date: 24th January, 2024 

● Minimum Application Amount: Rs 500