@VishalJain I would like to know your views on:
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Since Liquidcase tracks Nifty 1D rate as its benchmark, is there any impact of the scheduled calendar rebalancing of the indices? https://www.niftyindices.com/resources/index-rebalancing-schedule
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For the past 6 months, Liquidcase has been lagging behind its benchmark Nifty 1D rate. Liquidcase (3.13%) vs Nifty 1D (3.28%).
- The expense ratio of Liquidcase remains 0.26% despite the AUM growing significantly since the NFO launch. Rs 1698.38 crore as mentioned on the website. Zerodha Nifty 1D Rate Liquid ETF | LIQUIDCASE Mutual Fund
Though the expense ratio of Liquidcase (0.26%, growth based) is lower than the Nippon Liquidbees ETF (0.69%, i can understand higher because of its dividend-paying nature), if you notice, the category expense ratio is 0.19%. So there indeed is room to make the expense ratio of Liquidcase even lower. Especially, combined with point #2 growing AUM.
- If you compare the tracking error of Liquidcase to the peer Liquid ETFs, you’d notice that Zerodha Liquidcase tracking error is 0.12% which is higher than the peers. So again, Liquidcase investors deserve lower tracking error. This will improve performance of Liquidcase when compared to its benchmark i.e. point #1. Zerodha Nifty 1D Rate Liquid ETF: Peer comparison and competitor analysis
I am willing to park some unused funds. So doing my homework and raising such questions after deeply looking into Liquidcase. More so because I was among those who requested this product long back and have been keenly watching it since its launch.
Over to you now 