Zerodha’s LIQUIDCASE ETF crosses Rs 4,700 cr in AUM, Nithin Kamath call its Hero Fund

Zerodha Asset Management Company (AMC), the asset management division of leading brokerage firm Zerodha, has achieved a significant milestone by crossing Rs 6,400 crore in assets under management (AUM) within just 18 months of its inception. The company attributes its success to the LIQUIDCASE ETF, which has garnered Rs 4,700 crore in a span of 15 months, making it one of the most successful retail Exchange Traded Fund (ETF) launches in India.

Zerodha's Founder and CEO, Nithin Kamath, highlighted the company's achievements in a tweet shared on X. He remarked on the remarkable growth despite minimal marketing efforts, noting that the direct-only model, which focuses on cost-efficient index funds and ETFs, has attracted over 700,000 retail investors. Kamath commented, "It's been 18 months since the first fund launch of ZerodhaAMC with Smallcase. The idea was to offer simple and cost-efficient index funds and ETFs and stay direct only. Despite not being loud about the AMC, 7 lakh investors have saved Rs 6,400 crores in our funds."

The LIQUIDCASE ETF is described as Zerodha's 'Hero Fund,' and its rapid growth from an AUM of Rs 843 crore in April 2024 to Rs 4,700 crore signifies its strong market presence. He further stated LIQUIDCASE ETF is their Hero Fund, which is at Rs 4,700 crore and this is all in 15 months.

The fund's unique structure, being India's first Liquid ETF with Growth NAV, provides convenience by eliminating dividend tracking and offering quick liquidity with low risk, which has been a major draw for investors.

The LIQUIDCASE ETF sets itself apart as it tracks the "Nifty 1D Rate" benchmark and invests in overnight instruments such as Tri-Party Repo on Government Securities or T-bills, Reverse repo, Cash & Cash equivalents, and Government Securities. This structure allows it to offer a simple, low-risk option for cash management, aligning with investors seeking short-term parking of funds or an emergency corpus. Despite its negligible risk profile, Kamath acknowledged, "LIQUIDCASE has to be one of the most successful Indian retail ETF launches ever."

Fund features

Launch Date: January 2024

Fund Type: Debt – Liquid

Fund House: Zerodha Asset Management Pvt Ltd

NAV (as of May 29, 2025): ₹108.7776

Total Net Assets: ₹4,746 crore

Expense Ratio: 0.07% (Low cost)

Exit Load: Nil

Minimum Investment: Rs 500

> Returns & Performance
1-Year Return: 2.42%

Benchmark Index Return: 2.36%

Category Rank: 38/38 (as of May 2025)

Standard Deviation: 0.39 (benchmark); very low volatility

Sharpe Ratio: -5.17 (benchmark); however, typical for ultra-low-risk funds

> Suitability
Ideal for short-term parking of surplus funds or emergency corpus

Best suited for holding periods ranging from a few weeks to one year

Virtually negligible risk, but returns are not guaranteed

> Taxation
Capital Gains (Invested after April 1, 2023):

Entire gains taxed as per investor’s income slab

Capital Gains (Invested before April 1, 2023):

Sold within 1 year: taxed as per slab

Sold after 1 year: taxed at flat 12.5%

Dividends:

Taxed as per income slab

10% TDS if dividend exceeds Rs 10,000/year

Other funds

Zerodha AMC presently manages nine schemes, including four equity schemes, two debt schemes, and three commodity funds. The LIQUIDCASE ETF, with a NAV of Rs 108.7776 as of May 29, 2025, has an expense ratio of 0.07% and no exit load, making it a cost-effective investment choice. Investors have expressed appreciation for its tax efficiency, as returns are taxed upon the sale of the ETF, unlike other funds where dividends are continuously taxed. As the Indian ETF landscape continues to evolve, competitors such as HDFC Mutual Fund and ICICI Prudential Mutual Fund may look to similar innovations to match Zerodha's compelling offering.