Everything you need to know about Liquid Exchange Traded Funds (ETFs)

Hi,

When I pledge the liquidbees in my account, do dividends acrue in my account or will it be taken by broker?

You will be the owner of dividends but broker will receive it and he will transfer to you.

Effective June 01, 2020, this process is undergoing a change. The shares will no longer move out of the investor’s demat. Instead, a pledge will be marked in favor of the trading member. Here’s the SEBI circular explaining the change.
In that case you will receive dividends directly in your account, broker is not involved.

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what about previously pledged securities.I mean will thay be transfered back to clients demat or not.

They will be moved according to this new process, will let you know finer details in few weeks.

Siva,
1.) If I have pledged Liquid Bees, then can I sell them in the market without unpledging?
2.) How much time it will require for the amount to be credited in my trading account if consider unpledging also and then selling ?

Can anybody teach me about Liquidbees?? How they work any why are they always INR 1000? :confused: How to buy them? I mean when we buy liquid fund units… the NAV keeps including the interest daily… but LiquidBess doesnt seems to fluctuate. How If me or someone else invest in these… will get the interest? will the interest keep crediting to our trading account or the value of LiquidBess will start increasing… after its in our demat??

and If after having it in my demat account for 3 4 days, will I be able to sell it easily??

Please can anybody share some knowledge or their experience with liquidbees?

read the first post

ICICILQ - this has show better returns over the last year compared to Liquid BeES and DSP Liquid EFT. Is this available on Zerodha?

It is available.

Thanks Shubh! One more question - is it also equivalent to Cash when pledged for margin (i.e. similar to liquidbees)?

If you scroll up, you’d have noticed that both your questions have already been answered :slight_smile:

@Nakul_Rathi , could you let me know the portal where you could compare the ICICLQ returns with other two?

It was on moneycontrol

I would like to know how much haircut does zerodha calculate while using liquidbees as collateral for options trading.

Haircut on Liquidbees is 10%.

If we have to choose between Liquid Bees And HDFC Liquid Fund
Then which will be better, please suggest which is very low risk…

Liquid Bees is slightly less riskier compared to a Liquid Fund as Liquid Bees invests in securities maturing in period of one day, you can count Liquid Bees and other Liquid ETF’s in Overnight Funds category. Liquid Fund’s on the other hand invests in securities maturing over period of 90 days which makes them slightly more riskier compared to Liquid ETF’S/Overnight Funds but returns are also a bit better.

You can read this post for more info Liquid funds vs. Liquid ETF/Overnight Funds

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Ok Thanks
Then how about Bharat Bond the info is that They also invest in AAA & Government bonds, So as return in Liquid Bees is less can I go with the Bharat Bond…!

Personally I would diversify across all three categories, You can learn more about Bharat Bond ETF here. Everything you need to know about the Bharat Bond ETF (Edelweiss PSU Debt ETF)

Below snapshots are from the haircut document of Zerodha


  1. Both of them mention different haircuts for LIQUIDBEES and ICICILIQ, which one is correct (8% or 10%)?
  2. Which one is considered as the haircut for cash equivalent margin - 8% or 10% during option writing ?
  3. Where is the LIQUIDETF by DSP , it is not there in any of the list, can that not be used for pledging ?
    @siva @Bhuvan @nithin