Zerodha Nifty 1D Rate Liquid Fund

Zerodha Nifty 1D Rate Liquid Fund is a type of mutual fund primarily designed for investors seeking a short-term, low-risk investment option in the Indian financial market. It targets overnight returns through a portfolio comprising high-quality debt and money market instruments such as treasury bills, commercial papers, and certificates of deposit, ensuring ample liquidity. This fund is particularly appealing for institutions and retail investors aiming to park surplus cash temporarily while maintaining easy access to their funds. A notable characteristic of the Zerodha Nifty 1D Rate Liquid Fund is its focus on very short tenure securities. This minimizes interest rate risk, making it a conservative choice that aligns with the needs of those looking to preserve capital and earn returns slightly higher than standard savings bank accounts. By offering a highly liquid investment avenue, it plays a crucial role in cash management strategies for investors needing to maneuver funds swiftly and efficiently. It stands as part of Zerodha’s broader range of financial products, contributing to their mission of democratizing investment opportunities in the Indian financial markets.