The Angel One Nifty 1D Rate Liquid ETF – Growth is an open-ended ETF that aims to provide current income with low risk and high liquidity. The fund will primarily invest in Tri-Party Repo on Government Securities or T-bills/Repo & Reverse Repo. It tracks the total returns of the Nifty 1D Rate Index, though tracking errors may occur. The NFO opens on March 20, 2025, and closes on March 24, 2025, with a minimum subscription amount of ₹1,000. There are no guarantees regarding the achievement of the investment objective.

Investment Objective and Strategy

Objective:

The investment objective of the Scheme is to seek to provide current income, commensurate with low risk while providing a high level of liquidity through a portfolio of Tri-Party Repo on Government Securities or T-bills / Repo & Reverse Repo. The Scheme will provide returns before expenses, that track the total returns of Nifty 1D Rate Index, subject to tracking errors. However, there is no guarantee or assurance that the investment objective of the Scheme would be achieved.

Investment Strategies:

Subject to the SEBI MF Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities / instruments:

1. Securities constituting the Underlying Index.

2. Money Market Instruments,

3. Tri-Party Repo on Government Securities and/or Treasury bills/ Repo & Reverse Repo,

4. Cash & Cash Equivalents,

5. Units of money market / liquid mutual fund schemes, subject to requisite regulatory guidelines.

Any other securities / instruments as may be permitted by SEBI from time to time, subject to requisite regulatory approvals, if any.

Angel One Nifty 1D Rate Liquid ETF – Growth will track Nifty 1D Rate Index and will use a “passive” or indexing approach to endeavour to achieve the Scheme’s investment objective. The AMC does not make any judgments about the investment merit of a particular security nor will it attempt to apply any economic, financial or market analysis. Indexing eliminates active management risks with regard to over/ underperformance vis-à-vis a benchmark. The Scheme will invest at least 95% of its total assets in the securities comprising the Underlying Index. The Scheme may also invest in Money Market Instruments / money market or liquid schemes of own or other mutual funds to meet the liquidity and expense requirements.

About Nifty 1D Rate Index

The Nifty 1D Rate Index, which gauges returns from overnight lending in the money market backed by government securities, is mirrored by this exchange-traded fund.  It is no longer necessary to measure fractional interest profits because returns are tracked via NAV fluctuations. Investors can park their idle funds with the broker and generate income by using this exchange-traded fund (ETF).  This can be helpful in the time between selling an existing stock investment and using the money to buy new stocks later.

About Angel One Nifty 1D Rate Liquid ETF – Growth

The Nifty 1D Rate Index measures the returns generated by market participants lending in the overnight market using government securities as underlying collateral.   The overnight rate reported on the CCIL platform, called the “Triparty Repo Dealing System (TREPS),” which uses government securities as the underlying asset class, is used to determine the index’s values.   The source is NSE Indices Ltd.

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Strengths of Angel One Nifty 1D Rate Liquid ETF – Growth

• High Safety: The plan is a reasonably low credit-risk investment because it will invest in Tri-Party Repos (TREPS) on Treasury Bills (T-Bills) and Government Securities (G-Secs).
• No MTM (mark-to-market)  Risk: There won’t be any price volatility brought on by interest rate fluctuations or MTM risk because the ETF will invest in securities with overnight maturities.
• Liquidity and Trading Simplicity: Since the ETF’s units will be listed on the NSE, purchasing and selling will be as easy as with regular stocks.
• Cheap Transaction Fees:  When purchasing or selling ETF units, there is no Securities Transaction Tax (STT).
• Trading Margin: With exchange approval, the ETF may be used as trading margin collateral.