Best Nifty 1D Rate Liquid ETFs – 1 Year Returns Comparison

Nifty 1D Rate Liquid ETFs are exchange-traded funds that track overnight money market rates, making them a popular choice for investors seeking high liquidity with lower risk. Over the last 12 months, these ETFs have delivered stable but modest returns — ideal for short-term and liquidity-focused portfolios. 

What Are Nifty 1D Rate Liquid ETFs?

These ETFs invest primarily in short-duration overnight instruments like repos, reverse repos, and government securities. Their goal isn’t high growth but capital preservation with liquidity and predictable short-term returns. 

1-Year Performance Summary

Over the past year, returns in this category were modest:

• Kotak Nifty 1D Rate Liquid ETF led the pack at 5.36%.
• Angel One Nifty 1D Rate Liquid ETF Growth followed closely at 4.69%.
• Several funds posted lower gains or flat performance, reflecting the stable but low-volatility nature of overnight rate tracking ETFs.
  

This performance spread confirms that, even within a low-risk class, return dispersion exists based on fund strategy and portfolio composition.

Key Benefits of These ETFs

✔ High liquidity – easily traded like stocks
✔ Lower interest rate risk due to short duration
✔ Predictable return profile compared to longer-term debt funds
✔ Suitable for parking idle cash while earning returns

Things Investors Should Know

• These ETFs are typically held in a demat account, similar to equity ETFs.
• Performance largely mirrors short-term interest rate movement rather than market alpha.
• Always consider expense ratio and tracking efficiency when comparing similar funds.
  

To view the latest NAVs or historical charts, check ETF data pages on your broker or mutual fund platforms.

Conclusion

Nifty 1D Rate Liquid ETFs remain a practical choice for liquidity and capital preservation. While returns over one year are low to moderate, they fulfil their role for investors looking to strike a balance between safety and yield. Long-term growth isn’t the focus here — stability and access are. 

Disclaimer – The fund’s investment objective, asset allocation, and risk profile are as described in the scheme offer documents, and investor shall read carefully before investing. All information has been obtained from sources believed to be reliable; however, no guarantee, warranty, or representation is made regarding its accuracy, completeness, or adequacy. Portfolio construction, execution strategies, and the use of permitted instruments are based on prevailing market conditions and subject to SEBI Mutual Funds regulations. Any income distributions are subject to applicable tax laws, which may change from time to time. Investors should consult their financial and tax advisors regarding applicable laws, investment horizon, and suitability of the Scheme.