Zerodha LIQUIDCASE nears Rs 6,000 crore AUM in under two years

Synopsis

Zerodha LIQUIDCASE, India’s first liquid ETF with a growth NAV, has reached nearly Rs 6,000 crore in AUM within two years of its January 2024 launch. Founder Nithin Kamath said the growth is entirely organic, driven by investors seeking a simple, tax-efficient alternative to traditional liquid funds.

Zerodha LIQUIDCASE or Zerodha Nifty 1D Rate Liquid ETF, India’s first liquid ETF with a growth NAV, has reached an AUM of nearly Rs 6,000 crore in under two years since its launch in January 2024, said Nithin Kamath, Founder and CEO, Zerodha Mutual Fund

What makes this milestone remarkable is that all of this growth has been completely organic, driven purely by traders and investors discovering and adopting the product on their own, Kamath said.

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The CEO posted on the social media platform that, “Zerodha LIQUIDCASE is India's first liquid ETF with a growth NAV, and we launched it in January 2024. In just under two years, it's incredible that the AUM has reached almost ₹6,000 crores.

All of this growth is organic, from traders and investors discovering the ETF and investing in it. We haven't really spoken about it much, and you can't pay commissions on an ETF anyway.

The innovation here was simple: no dividends, because they were tax-inefficient and a pain to redeem and track. I can't figure out why other AMCs didn't do this before us. Kudos to @vishaljain2510 and the @ZerodhaAMC team for figuring this out.”

The post further read that, unlike traditional approaches, Zerodha Fund House hasn’t actively promoted LIQUIDCASE, and as an ETF, there are no commissions or distributor incentives involved.

The idea behind LIQUIDCASE was simple yet impactful: remove dividends, which are often tax-inefficient and cumbersome to track and redeem, and this small innovation has resonated strongly with investors looking for simplicity and efficiency in short-term money management, the CEO informed.

According to data from ACE MF, the fund had an AUM of Rs 5,430 crore as on September 30, 2025. As per the last available data of September 2025, the fund had an allocation of 0.53% in debt and 99.47% in others.

The fund is managed by Kedarnath Mirajkar, and performance is benchmarked against the Nifty 1D Rate Index.

Zerodha Mutual Fund says that Zerodha Nifty 1D Rate Liquid ETF aims to provide liquidity with relatively low risk. It follows the Nifty 1D Rate as its benchmark and invests in overnight instruments like Tri-Party Repo on Government Securities or T-bills, Reverse repo, Cash & Cash equivalents and G-Sec(s). This ETF offers a simple and effective way to manage cash with a relatively low interest rate and credit risk.

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The fund house says that this ETF may be a good choice for someone who has extra money and wants both liquidity and growth in a short period.

Since its launch, the fund has delivered an annualised return of 6.08%, according to the data on the fund house website.

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