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Zerodha AMC launches LIQUIDCASE, a growth ETF that will reinvest dividends


Zerodha Asset Management Company has launched LIQUIDCASE, a growth equity traded fund (ETF) wherein the proceeds from dividends will be added back to the total corpus or the net asset value.

“We wanted to offer something simple where investors didn’t have to bother about dividends, taxes etc,” said Nithin Kamath, CEO of parent company Zerodha, in a post announcing the fund.

“The way LIQUIDCASE works is simple: the returns in the ETF will be added to the NAV (net asset value) 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,” he added.

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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… pic.twitter.com/DW1bPdmZrO

&mdash; Nithin Kamath (@Nithin0dha) January 24, 2024

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Funds possess an NAV that represents the per-share value of all its owned assets. Any increase in the value of the trust’s assets results in a growth of the NAV and vice versa.

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LIQUIDCASE tracks the Nifty 1D Rate Index, which measures the returns generated by market participants lending in the overnight market. The ETF’s return profile will be similar to that of overnight mutual funds, offering returns better than most savings bank account interest rates, said Kamath.

Brokerage house Zerodha formed a joint venture with Amazon-backed wealth management firm smallcase to build an asset management company (AMC) Zerodha Fund House, in April last year. The AMC had reportedly clocked assets under management of Rs 240 crore in two months of its launch since late October.

Edited by Kanishk Singh





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