All about LIQUIDCASE, India’s first growth liquid ETF by Zerodha Fund House

Personal finance
22

Hey @Mayank_Agrawal2,
The average maturity of the product remains close to 1 day as the scheme invests in overnight securities, primarily TREPS (Treasury Bills Repurchase) traded on the CCIL platform. Currently, the YTM of TREPS ranges between 6.10-6.75% and varies on a day-to-day basis depending on demand and supply in the overnight market. As TREPS is of 1 day maturity, the daily NAV would reflect the returns on investment for the day net of expenses. The NAV is available on our website on a daily basis.

23

For iNAV details on the website please mention the date of NAV as well else it could lead to confusion depending on when the iNAV is updated.

24

While checking the charges it’s showing STT. But as explained above, it being a debt instrument shouldn’t have STT. Please clarify.

25

Hi @arunksingh

STT is temporarily displayed in the charges section of the order window for Liquid BeES and Liquid ETFs. However, it will not be charged.

26

Thanks a lot for the clarification

1 Like
27

Are DP Charges applicable when selling LiquidCase or LiquidBees?

28

Yup. DP charges will be levied whenever you sell your holdings from your demat account(except for the mutual funds).

DP charges will be Rs.13.50 + 18% GST per stock per day. You can refer to this article for more information.

1 Like
29

Can we instantly sell pledged LIQUIDCASE without unpledging ?

30

Z should lower DP charges for Liquidcase like liquidbees or even promote for lesser :smiley:

32

Team is working on instantly unpleding liquid ETFs, @VijayNair

This should be live within a month

1 Like
33

LIQUIDCASE-F(INF0R8F01034) cannot be pledged. Maximum Qty of shares that can be pledged at trading member level reached.

:nauseated_face:

3 Likes
34

Makes it impractical for managing liquidity then. After selling, wont know if we can buy back later …

35

Thats true , able to pledge partial portion only . I think more no of liquidcase etf available on public (eventually it will happen since it is open ended ) this restriction will eased . But @nithin may comment on this

36

hello,
can someone please explain to me what market situation I can lose money in a liquidcase?
what will go wrong in markets or the economy will negatively impact this ETF.

37

If India is attacked and captured by Pakistan or China

2 Likes
38

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

39

I had a doubt about overnight and liquid funds Vishal. What exactly is “TREPS”?

I know it is tri party something. But who exactly are you lending to, and do they actually use and return it back in just 1 day? Not able to understand the concept.

I’ve seen all cash holdings of mutual funds in TREPS, such as 5-10%, and they have a yield attached to it.
Who is paying interest just for 1 day? Every mutual fund combined has thousands of crores in TREPS. All just invested for 1 day

Would love a blog on the topic on Z-Connect if you have the time

40

If you are interested in theoretical risks, you can look at on their website https://assets.zerodhafundhouse.com/offer-documents/kim/Zerodha%20Nifty%201D%20Rate%20Liquid%20ETF%20-%20KIM.pdf

Main risk will be liquidity, i.e no one wants to buy LIQUIDCASE specifically, and are more interested in LIQUIDBEES, etc.

41

Hi, you could go through the FAQs below:

https://www.ccilindia.com/FAQ/Pages/TREPS.aspx

Incase you need anything further, do reach out.

Thanks

1 Like
42

Thanks a lot, very informative