Are liquidbees absolutely safe even if AMC goes bust


#1

Are liquidbees safe even if the AMC shuts shop or goes bankrupt? It is managed by Reliance ADA Group. Liquidbees are very useful intruments for FNO margin purposes


#2

Mutual fund scheme will go bust if investment made by it goes bust otherwise status of AMC is irrelevant.
So in ur case if reliance AMC becomes bankrupt they will sell schemes to someone else but value of ur investment won’t be affected


#3

The chances of Reliance MF going bust are as minuscule as possible. It is one of the biggest AMC’s in India and it is also listed on the exchanges. Given that it is regulated entity there are plenty of disclosures on top of the disclosures it has to make as part of being a listed entity.

As for the instrument itself, Liquidbess invests predominantly in Tri-part Repo (TREPS). This is a fully collateralized instrument with no counter party risk.