Angel One Mutual Fund Launches Nifty 1D Rate Liquid ETF for Short-Term Investors
Angel One Asset Management Company has introduced the Angel One Nifty 1D Rate Liquid ETF-Growth, a scheme of open-ended exchange-traded fund (ETF) type that aims to replicate the Nifty 1D Rate Index. The ETF intends to offer investors a hassle-free investment option through reinvestment of daily earnings into the scheme itself, thereby allowing accrued earnings to be shown in the Net Asset Value (NAV) without requiring tracking of fractional units.
Important Features of the NFO
The recently launched ETF provides various benefits to investors:
- No Entry or Exit Load: Investors have the freedom to enter and exit without extra cost.
- Low Investment Base: The minimum application size is Rs.1,000, with the facility to make further investments in multiples of Re 1.
- Listing at Stock Exchange: Units will be listed on the National Stock Exchange (NSE) within five working days of allotment date so that there will be liquidity and easy tradability like normal shares.
- Effective Fund Management: The fund will be taken care of by Mehul Dama and Kewal Shah, bringing professional experience in order to achieve maximum returns.
Investment Advantage and Cost-Efficiency
The ETF is designed to provide high liquidity and safety, and hence it is preferred by the investors seeking to maximize the returns on idle money. It also supports the usage of margin for trading, further enhancing its usability.
From a tax viewpoint, the ETF is economical as income tax is charged only upon the sale of units. Secondly, Securities Transaction Tax (STT) is not charged on transactions in ETFs, thus it is economical.
A Smart Investment Option
With the delivery of a secure and hassle-free investment vehicle, this ETF will gain numerous investors. Its minimal cost, tax benefits, and liquidity give it an advantage as a feasible short-term investment vehicle in today’s new financial world.
