Introducing Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE) in WCPL’s smallcases

We are pleased to announce that Windmill Capital will now be including  Zerodha Nifty 1D Rate Liquid ETF (Ticker: LIQUIDCASE) in our smallcases in place of Nippon India ETF Nifty 1D Rate Liquid BeES (Ticker: LIQUIDBEES). This new change will start with the All Weather Investing smallcase, and here’s why this change is significant:

Easy returns tracking:

Zerodha NIFTY 1D Rate Liquid ETF is India’s first liquid growth NAV exchange-traded fund (ETF) designed to provide investors with a transparent and efficient investment option. Unlike traditional ETFs such as DSP, Mirae, Kotak Liquid ETFs, and Nippons’s LIQUIDBEES ETF which have a constant NAV at ₹1000 and generate returns in the form of dividend units, LIQUIDCASE ETF reflects its returns in its daily price. This feature makes it easier for investors to track performance and eliminates the complexity of dealing with fractional units.

Lower Expense Ratio:

With an expense ratio of just 0.26%, LIQUIDCASE ETF offers a significant cost advantage over LIQUIDBEES ETF, which has an expense ratio of 0.69%, translating to savings for our users.

Better taxation structure:

In LIQUIDCASE ETF the tax liability is simple which is Short Term Capital Gains (STCG) as per your tax slab on the capital appreciation you have enjoyed and it is applicable only when you redeem (sell) it. However, existing liquid ETFs like the ones mentioned above, including LIQUIDBEES ETF, record taxation every time dividends are credited to a user’s account, which is not user-friendly.

Lower Minimum Investment Amount:

The concept of Minimum Investment Amount (MIA) is an important criterion behind managing our smallcases. LIQUIDBEES ETF, at ₹1000 was the highest-priced ETF in the smallcase and hence was the main contributor to the MIA. Now, with LIQUIDBEES ETF going out and LIQUIDCASE ETF coming in at around ₹100, the MIA of the smallcase will drop and make one of the most popular smallcases – All Weather Investing much more accessible to all sorts of investors.

No fractional units:

Existing Liquid ETFs as mentioned above including LIQUIDBEES ETF offer dividends in the form of additional units. Sometimes these units are fractional and thus investors cannot sell/redeem them easily. On the other hand, LIQUIDCASE ETF captures returns directly in the NAV of the fund and does not allow fractional units. This makes it extremely easy for investors to redeem the fund when needed completely.

Wrap Up

Our decision to add LIQUIDCASE ETF into All Weather Investing smallcase and soon to other portfolios in place of Nippon’s LIQUIDBEES stems from our commitment to optimizing user experiences across all our offerings. 

LIQUIDCASE ETF offers a cost-effective and investor-friendly solution for those seeking liquidity and stability in their investment portfolios with a lower expense ratio, simplified taxation structure, and daily price reflection of returns.

Until next time ✌️

Disclosure – Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE) is a product of Zerodha Mutual Fund. Windmill Capital’s holding company – Smallcase Technologies Private Limited (STPL) is a shareholder in Zerodha Asset Management Private Limited (Zerodha AMC), which is the asset manager for Zerodha Mutual Fund. Windmill Capital states that its research recommendations are made independently and objectively based on their merits and suitability without any influence due to STPL being a shareholder in the Zerodha AMC.

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy/sell any security or financial products.Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary.

Windmill Capital Team: Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645) based in Bengaluru at No 51 Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore, Karnataka – 560025 creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone. CIN of the company is U74999KA2020PTC132398. For more information and disclosures, visit our disclosures page here.