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

On kite, it says 0.11 is the charge to buy 1 liquidcase whose price is 101.15 INR today – that means the charges is around 0.11% which is far greater than that you mentioned (0.015%). Could you please clarify the reason of this difference?

Hi @VishalJain,

First of all great to see a liquid ETF with different dividend type distribution method from Zerodha Fund House.

Could you clarify if there would be any NAV changes happening on holidays and non-market days or would the NAV take into account the holidays as well? I’m asking this because i see NAV changes with liquid funds and overnight funds even on holidays (holidays and non-market days being accounted for). Will Liquidcase be similar in terms with NAV or is it something different and NAV is accounted only for market days?

  1. Tight or illiquid markets, so you may have to sell at lower price.
  2. Reduced return on investment if RBI hikes interest rates (I may be wrong here)

I cannot think of anymore beyond the above two.


I recently bought a big amount of Liquidcase, with the intention of using them as liquid collateral. However, I found out next day that the pledge limit for this stock has reached, and it cannot be pledged at the moment.

Does anyone have any idea, when will this limit be re-considered? Is it at the end of every month? Because if the limit is going to stay for a long time, I better redeem this and buy something which works for my purpose.

Though it will be sad because I really like the product for what it is

a) It is better than Liquidbees because no dividend, taxation, fractional units headaches
b) It is better than some ETFs like MOGSEC which had a much higher impact cost. Liquidcase has just 0.01 impact cost which is really good.

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The NAV of LiquidCase is similar to any other Overnight/Liquid/Debt Fund in which the interest earned on the weekend from the underlying investments is reflected in the NAV.

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Hi, the exchange reviews this every quarter, we are expecting the enhanced limit to become applicable by May 1st due to some guidelines followed by the clearing corporation. We are in conversation and will keep you updated if this happens earlier.

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hi, so if I buy Liquidcase, I won’t be able to pledge it in zerodha or any broker with this limit issue?

Pledge limit is per broker.

Hi Vishal,
Thanks for introducing growth nav liquid etf. I use it all the time for parking money between the trades and redeem when i need to provide margin for my trades.
However, when i redeem the unit that gets sold is the one which was bought first. That means over time entire holding is getting churned and as a result I’ll keep booking big profits on the longest held units and pay taxes on the profit at the applicable tax slab.
Is there a way to keep the older units untouched and sell only the newest unit first? If that’s possible I’ll book only small profits on newer holdings and keep the balance bulk holding intact, and my tax outgo will be less.
One possible way was to create multiple folios and sell the one which is more tax efficient. But is that possible in a demat account (Zerodha)?

You can try buying it in different demat accounts, but yeah other than that FIFO rule always applies. Can’t avoid it in one demat account.

You can do different liquid ETFs, and hold some for longer time, but again, nothing else is growth NAV.

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The exchange has increased the pledging limit for LIQUIDCASE by almost 8x, as on today (April 1st 2024). Pledge limit for this ETF should not be a concern due to this enhanced limit.

No pledging option available till now. Same message - This instrument can’t be pledged.

Only shares in holdings can be pledged, T1 holdings cannot be pledged today since it’s a settlement holiday.

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Thanks for clarifying

Is it possible for LIQUIDCASE to give negetive return?
Like in liquid bees we get dividend but in case of liquidcase it is growth based so is it possible that we get negetive returns on our investment?

Hi Mihir, LIQUIDCASE is similar to LIQUIDBEES in the sense that both products invest in the same underlying which is overnight TREPS. The only difference being that one is growth and the other pays out the dividend. Thus in both cases the chance of negative returns could happen if interest rates ever fall so low that it doesn’t cover the expense ratio (TER) for the day which seems very unlikely. Please consider any other charges you may be paying for execution.

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how will it be taxed when sold?

Will it be considered as STCG if sold within 1 year and taxed at 15%? just like stocks?

LIQUIDCASE is considered as debt and will be taxed as per your tax bracket.

Hi VIshal,
Comprehensive post, thank you!
One question - how can we redeem the units bought - would it be similar to Mutual funds redemption request?

Hey Nakul, LIQUIDCASE is an ETF and so one can buy/sell it on the stock exchange itself. It trades under the ticker “LIQUIDCASE”.

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