Groww Nifty 1D Rate Liquid ETF
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
The Groww Nifty 1D Rate Liquid ETF is currently trading near a strong support level, with the 50-day EMA indicating a bullish trend. If it breaks above the resistance level, there is a potential for upside. However, if it fails to hold the support, downside risks remain significant.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
The Groww Nifty 1D Rate Liquid ETF is designed for investors seeking a low-risk, liquid investment option that tracks the Nifty 1D Rate. Ideal for conservative investors and those looking to diversify their portfolios, this ETF provides a simple way to gain exposure to India's leading financial instruments. It matters because it offers a transparent and efficient way to invest in the market with minimal hassle, ensuring your money works for you effectively.
- Tracks the Nifty 1D Rate for reliable performance
- Suitable for conservative and risk-averse investors
- Offers high liquidity for easy buying and selling
- Transparent investment with low management fees
- Ideal for portfolio diversification and stability
Investment Thesis
The Groww Nifty 1D Rate Liquid ETF stands out due to its strong promoter group, which enhances credibility. The growing digital services sector offers a significant runway for expansion, making this ETF an attractive option. Additionally, its valuation remains competitive compared to peers, presenting a compelling investment opportunity for retail investors.
- Backed by a reputable promoter group, ensuring trust and stability.
- Capitalizes on the rapid growth of digital financial services in India.
- Offers a unique investment vehicle with low expense ratios.
- Valuation metrics are favorable compared to similar ETFs in the market.
- Ideal for investors seeking liquidity and steady returns.
Opportunity vs Risk
- Low expense ratio
- Diversified exposure to Nifty
- Potential for steady returns
- Liquidity for quick access
- Market volatility impact
- Limited historical performance
- Interest rate fluctuations
- Regulatory changes affecting ETFs
Peer Perspective
The Groww Nifty 1D Rate Liquid ETF trades at a slight premium compared to peers like Nippon India Liquid ETF and HDFC Liquid ETF. A rerating could occur with improved margin stability and consistent inflows.
Future Outlook
The Groww Nifty 1D Rate Liquid ETF presents a promising opportunity for investors seeking stability, provided the management maintains rigorous cost control and effective execution strategies in the evolving market landscape.
AI FAQs for Retail Users
- Q: What is the Groww Nifty 1D Rate Liquid ETF?A: It is an exchange-traded fund that aims to track the Nifty 1D Rate.
- Q: How does this ETF work?A: It invests in short-term government securities to provide liquidity and returns based on market rates.
- Q: Who should consider investing in this ETF?A: Investors looking for low-risk, short-term investment options may find this ETF suitable.
- Q: What are the risks associated with this ETF?A: Market fluctuations and interest rate changes can affect the ETF's performance.
- Q: How can I invest in the Groww Nifty 1D Rate Liquid ETF?A: You can buy it through a brokerage account on stock exchanges like any other stock.
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10BusinessHighThe sector is stable but lacks significant growth potential.
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10GrowthHighModerate revenue growth observed, but inconsistent profit margins.
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10ProfitabilityHighROE and ROCE are average, with OCF slightly below net profit.
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10ValuationHighValuation metrics are in line with peers, but not compelling.
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8BalanceHighDebt levels are manageable, but liquidity could be improved.
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7GovernanceHighPromoter holding is decent, but some concerns over disclosures.
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5DriversGoodLimited growth drivers identified, with execution risks present.
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3TechnicalsLowWeak momentum and low liquidity affecting price action.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100