Bharat bond , Liquid bees , Overnight/Liquid fund , which is best?

Hi , Moderators and Experienced Traders , Please give your opinions about Investing in Bharat bonds , Liquid bees , Overnight funds / Liquid funds in the aspect of better returns and safety and anyother advantages or disadvantages left .
As far i collected these informations :
As per safety Bharat bonds , Liquidbees , overnight funds are the safe instruments in present condition and then comes Liquid funds
As per instrument informations ,
Bharatbond can give 6-7 % returns yrly ( investing in psu debt bonds , backed by Govt , safe for money)
Liquidbees 3-4 % only ( investing in Triparty , safe for money )
Overnight funds also 4-5 % ( investing in Triparty for daily maturity , backed by ccil , so safe for money)
Liquid funds 5-6 % , better return than overnight funds ,but little bit behind in safety concerns after Franklin MF issue , so better to go for overnght funds .

All the abv instruments can give 90 % collatreral margin after haircut .

Here i need your valuble opinions abt which one is better in both safety and returns aspect , and apt for pledge for collateral margins . If anything missed otherthan this please refer that also .
Thanks in advance .

( Also i read one article here that GOI bonds with 7 % returns still , but unable to find more details , if any link regarding GOI bonds please give me the link aslo , Thanks .)

Personally I would diversify my investment across all these Funds and ETF’s so I won’t be exposed to any one scheme.

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Thanks , Shubh , but Liquidbees looks very low returns? , just i holding 1 months with some qty, it looks like yrly returns will be 1 to 1.5 % , is it or im missing something ?

Can’t really say why returns on LiquidBees are so low. Maybe due to reducing interest rates but that is just my assumption. Also you were asking about pledging, here you can find the list of MF’s and ETF’s available for pledging at Zerodha

Thanks Shubh , yes already saw that list from Tradingqna only ,

With Bharat Bond you have duration risk. Basically, in debt, longer the maturity, higher the sensitivity to interest rates. If there is a 1% rise in interest rates, Bharat Bond 2023 will fall 3%, if there’s a 1% fall in interest rates it will gain 3%. On the other hand it’s 10% of Bharat Bond 2030 since the duration is 10 years.

Overnight funds yield lesser because they only invest in securities that mature in one day. That’s the reason for their safety and low-returns.

You need to understand the concept of duration before putting money in debt instruments - returns ins’t everything. Higher returns come with higher risks. Check this chapter n debt funds


Thanks Bhuvanesh , Yes just now read one article from qna , from IDFC Winston"s video regarding Bonds , and thanks for the Debt funds link .:+1:

Missed that, suggest you watch those webinars to understand the basics. Thing about debt is mistakes are costly. So better to have a hold of the baics :slight_smile:


Ok Bhuvanesh , Thanks for the video