Zerodha LIQUIDCASE Approaches ₹6,000 Crore AUM in Less Than Two Years
Zerodha LIQUIDCASE, officially known as the Zerodha Nifty 1D Rate Liquid ETF, has made headlines as India’s first liquid ETF with a growth NAV. Launched in January 2024, this innovative product has impressively climbed to an Assets Under Management (AUM) of nearly ₹6,000 crore within a mere two years. Nithin Kamath, the Founder and CEO of Zerodha Mutual Fund, shared insights on this achievement and what it means for investors.
Key Highlights of Zerodha LIQUIDCASE
– Management and Benchmarking:
– The fund is managed by Kedarnath Mirajkar.
– Its performance is benchmarked against the Nifty 1D Rate Index, providing a solid indicator for investors.
– Remarkable Growth:
– The fund reached an AUM of nearly ₹6,000 crore in under two years.
– Notably, this growth has been completely organic, as it resulted from traders and investors discovering and adopting the product independently.
– CEO’s Perspective:
– Nithin Kamath posted on social media, stating, “Zerodha LIQUIDCASE is India’s first liquid ETF with a growth NAV. In less than two years, it’s incredible that the AUM has reached almost ₹6,000 crores. All of this growth is organic from traders and investors discovering the ETF and investing in it.”
– Increased Popularity:
– The impressive growth reflects a significant shift in investment strategies, where investors are increasingly drawn to products that prioritize simplicity and low cost.
Investment Strategy Behind Zerodha LIQUIDCASE
Zerodha has chosen to take a different route compared to traditional fund houses. The fund does not rely on active promotion nor does it offer commissions or distributor incentives, which are typically prevalent in the mutual fund industry. This minimalist approach resonates with an emerging wave of investors prioritizing efficiency and lower costs.
– Innovation in Approach:
– The underlying philosophy of LIQUIDCASE involves eliminating dividends, which can often be tax-inefficient and cumbersome to redeem and track. This small tweak has made a considerable difference for those looking for straightforward money management solutions.
– Asset Allocation:
– As of September 30, 2025, the fund’s allocation consisted of:
– 0.53% in debt
– 99.47% in other instruments
– This allocation strategy supports both liquidity and growth expectations.
Performance Metrics
Investors have shown confidence in the Zerodha LIQUIDCASE, with the fund delivering an annualized return of 6.08% since its launch. This performance metric is particularly appealing for individuals seeking short-term growth while maintaining liquidity.
Why Choose Zerodha LIQUIDCASE?
For those considering an investment in Zerodha LIQUIDCASE, here are several compelling reasons:
– Liquidity with Low Risk:
– The fund primarily invests in overnight instruments, including Tri-Party Repo on Government Securities, T-bills, Reverse Repo, Cash & Cash equivalents, and G-Secs. This investment strategy aims to provide liquidity while also minimizing credit risk.
– Simplicity and Efficiency:
– The absence of dividends simplifies the investment experience. This straightforward approach allows investors to focus on growth without the complexities associated with dividend management.
– Target Audience:
– This ETF is ideal for investors with extra capital looking for a combination of liquidity and short-term growth. It offers a convenient tool to manage excess funds while still aiming for returns.
Conclusion
Zerodha LIQUIDCASE’s impressive journey, nearing ₹6,000 crore in AUM in under two years, exemplifies an efficacious investment strategy aimed at modern investors. With its commitment to simplicity, cost-effectiveness, and strong performance, it has successfully carved a niche within the increasingly competitive financial landscape. Investors looking for a reliable, hassle-free method of managing cash and achieving moderate returns will find Zerodha LIQUIDCASE to be a compelling option. As the trend toward efficient and accessible financial products continues, this ETF positions itself as a game-changer in the Indian investment market.