Zerodha AMC's LIQUIDCASE hits ₹150 crore AUM in 7 sessions: How is it different from other liquid ETFs?

Zerodha's LIQUIDCASE (Liquid ETF), launched by Zerodha Asset Management Company (AMC), has surpassed ₹150 crore in Assets Under Management (AUM) within seven trading sessions. LIQUIDCASE is a growth equity traded fund (ETF) wherein the proceeds from dividends are added back to the total corpus or the net asset value.

The same was launched in January this year.

Traditional liquid ETFs maintain a fixed net asset value (NAV)/price, offering returns in the form of either additional units or cash.

LIQUIDCASE, on the other hand, operates differently, with its NAV changing daily to reflect the scheme's performance.

Dynamic NAV: LIQUIDCASE's NAV changes daily, providing a real-time reflection of the scheme's performance, unlike the static NAV of traditional ETFs.

P&L tracking: LIQUIDCASE offers investors profit and loss (P&L) tracking by comparing entry and exit prices, a feature not available in other liquid ETFs where returns are provided in the form of cash or units, Zerodha AMC said.

Performance chart: LIQUIDCASE's performance chart displays actual growth and fund performance, allowing investors to interpret and analyse its progress, in contrast to the straight-line charts of other ETFs.

Fractional units: LIQUIDCASE eliminates the issue of fractional units that users face with traditional liquid ETFs, making it easier to trade and redeem units on the exchange.

Tax efficiency: LIQUIDCASE proves more tax-efficient, as investors are taxed only when selling units.

"In contrast, other Liquid ETFs subject investors to annual taxation due to constant dividend receipts throughout the year," Zerodha AMC said.

Liquid ETFs serve as an option for parking idle cash, offering returns compared to most savings bank accounts.

Investors keen on exploring the details of LIQUIDCASE can visit Zerodha's official website and make purchases using their existing broker accounts.