In a recent LinkedIn post, Nithin Kamath, CEO of Zerodha, discusses the rapid and organic growth of the company’s LIQUIDCASE, India’s first liquid ETF with a growth Net Asset Value (NAV). Kamath expressed his surprise and satisfaction at the fund’s performance, highlighting its significant asset under management (AUM) in a relatively short period.
Zerodha’s LIQUIDCASE Achieves Remarkable AUM Growth
Kamath revealed that Zerodha’s LIQUIDCASE, launched in January 2024, has garnered an AUM of nearly ₹6,000 crores in under two years. He emphasized that this substantial growth has been entirely organic, driven by traders and investors discovering and investing in the ETF without significant marketing efforts from Zerodha.
“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.”
As Nithin Kamath notes, the company has not extensively promoted the ETF, partly because commissions are not a factor in ETF promotion. This organic traction underscores the product’s perceived value and utility among its target audience.
Innovation in ETF Structure: Eliminating Dividends
The core innovation behind LIQUIDCASE, according to Kamath, lies in its structure, specifically the elimination of dividends. He explained that traditional dividends in ETFs often lead to tax inefficiencies and complications in redemption and tracking for investors.
“The innovation here was simple: no dividends, because they were tax-inefficient and a pain to redeem and track.”
Kamath further elaborated on the rationale, questioning why this seemingly straightforward innovation wasn’t adopted by other Asset Management Companies (AMCs) earlier. This suggests a strategic move by Zerodha to simplify the investment process and enhance tax efficiency for its customers.
Praise for the Zerodha Fund House Team
Giving credit where it’s due, Nithin Kamath lauded the efforts of Vishal Jain and the Zerodha Fund House team for conceptualizing and executing this innovative ETF structure. He acknowledged their pivotal role in identifying and addressing the pain points associated with traditional dividend-paying ETFs.
“I can’t figure out why other AMCs didn’t do this before us. Kudos to Vishal Jain and the Zerodha Fund House team for figuring this out.”
In Kamath’s view, the success of LIQUIDCASE is a testament to Zerodha’s commitment to product innovation and customer-centric solutions. By focusing on tax efficiency and ease of use, the company has managed to capture significant market share in a competitive landscape, demonstrating a keen understanding of investor needs.
📝 About This Content
This article is based on insights shared by Nithin Kamath on LinkedIn.
📅 Originally posted on November 7, 2025 | View original post on LinkedIn →