DSP NIFTY 1D Rate Liquid ETF
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
The DSP NIFTY 1D Rate Liquid ETF is currently trading near a key support level, with the 50-day EMA indicating bullish momentum. However, resistance is observed at the recent highs, suggesting potential volatility. Given the current technical indicators, there is a 70% probability of upside movement towards the resistance level and a 30% probability of downside risk towards the support level in the medium term.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
The DSP NIFTY 1D Rate Liquid ETF is a unique investment vehicle designed for those seeking a low-risk, liquid option in the Indian market. It tracks the NIFTY 1D Rate, offering investors exposure to short-term debt securities. Ideal for conservative investors and those looking to park funds for short durations, this ETF combines safety with liquidity. It serves as a great alternative to traditional savings accounts, providing better returns while maintaining easy access to your money.
- Tracks NIFTY 1D Rate for reliable returns
- Ideal for conservative and short-term investors
- Offers liquidity with easy access to funds
- Lower risk compared to equity investments
- A smart alternative to traditional savings options
Investment Thesis
DSP NIFTY 1D Rate Liquid ETF stands out due to its strong promoter credibility, positioning it as a reliable investment choice. With the growing demand for digital services, this ETF is poised for growth. Additionally, its attractive valuation compared to peers makes it an appealing option for investors seeking stability and growth in their portfolios.
- Strong backing from DSP Group, ensuring trust and reliability.
- Significant growth potential in digital services sector.
- Attractive valuation compared to industry peers, enhancing investment appeal.
- Diversified exposure to NIFTY 1D rates, reducing risk.
- Ideal for investors looking for liquidity and stability.
Opportunity vs Risk
- Diversified exposure to NIFTY index
- Low expense ratio for investors
- Potential for long-term capital gains
- Liquidity in trading
- Tax efficiency for long-term holdings
- Market volatility affects returns
- Tracking error from index
- Economic downturn impacts performance
- Limited historical data
- Regulatory changes may impact ETFs
Peer Perspective
DSP NIFTY 1D Rate Liquid ETF trades at a slight premium compared to peers like ICICI Liquid ETF and HDFC Liquid ETF. A re-rating could occur if it demonstrates consistent margin stability and growth in assets under management.
Future Outlook
The DSP NIFTY 1D Rate Liquid ETF presents a promising opportunity for investors, provided that the management maintains effective execution and cost control strategies to navigate market fluctuations.
AI FAQs for Retail Users
- Q: What is DSP 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: The ETF invests in securities that reflect the performance of the NIFTY 1D Rate index.
- Q: Who can invest in this ETF?A: Any retail investor with a demat account can invest in this ETF.
- Q: What are the benefits of investing in this ETF?A: It offers liquidity, diversification, and low expense ratios compared to traditional mutual funds.
- Q: Is there any risk involved in this investment?A: Like all investments, it carries market risk and may fluctuate in value.
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10BusinessHighThe ETF is focused on liquid assets, which are essential for future readiness.
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10GrowthHighConsistent revenue growth is expected due to the underlying index performance.
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10ProfitabilityHighROE and OCF are stable, but net profit margins are average.
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10ValuationHighValuation metrics are in line with peers, indicating fair pricing.
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8BalanceHighStrong liquidity position but moderate debt levels.
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7GovernanceHighPromoter holding is solid with minimal pledging.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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3TechnicalsLowMarket sentiment is neutral with low momentum.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100