Can someone explain how exactly Liquid Bees works?

General
1

What has been the returns short term and long term?

How do I buy it?

I have seen that value of Liquid bees remains the same all the time, so how does one earn a return?

When and how is this return credited?

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Please do check in this link, to know more about liquid bees.

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  1. Last year around 6.5%+ annual returns. Over the last 3 years, 7%+.

  2. Buy it similar to stocks, by using ur trading and demat account.

3/4. Yes, the value of liquid bees remains constant at around 1000. Dividends are daily, and all of these dividends are added together and credited to you once a month. It is credited to you as new units and not as money. So if you had bought 100 units at 1000, (Rs 1lks), held it for 1 year. At the end of the year you will probably have around 106 units with a value of 1000. (6 units at 1000, or Rs 6000 being your return).

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Just to add to Nithin’s answer, here are few useful links wrt to Goldman Sachs Liquid Bees -

  1. Product Presentation - http://www.benchmarkfunds.com/gs/Documents/GSLiquidBeESPresntation.pdf

  2. Last 6 months daily dividend history- http://www.goldmansachs.com/gsam/in/advisors/products/exchange-traded-funds/debt/liquid-bees/corporate-action.html (select dates from data picker, and ensure the option ‘Dividend Detail’ is seclected)

  3. To know when the hostorical and next date on which the dividends will be creditedhttp://www.goldmansachs.com/gsam/in/advisors/products/exchange-traded-funds/debt/liquid-bees/corporate-action.html

Also, you maybe interested to know in the month of April 2015, two dividend dates are scheduled, as opposed to the regular once a month schedule.

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HI karthik,
Liquid BEES

Scenario:

I have 25K in my trading account.

I buy 25 units of Liquid BEES on say Jan 1st.

On Mar 15th I have a buying oppourtunity ,Now I need to literally liquidate the cash to trading account.

1.What is the time involved on zerodha
2.I understand it is aa zero exit entry load fund Will I get 25K+ dividend accrued.
3.Is there any tax invloved

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@Karthik None of the links seems to elaborate on the particular topic. Can you share another link ?

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I want to know if I wish to liquidate my existing liquidbees in the morning for availing margin & later on before market close, I buy back those liquidbees.

This process of selling is executed instantly ? Or is there any waiting period or bids ask mismatch ?

Is it necessary to have a corresponding buyer ready if I want to sell my liquidbees?
(That is, unless someone buys it, I wont be able to sell, and vice versa?)
Actually if I m selling my liquidbees units, then whom am I selling to?

Is liquidbees safe investment, how secure n safe is it? Does it has anything to do with market crash or markets rallying?

Can the price of liquidbees increase or decrease after few months?

What is the eligibility to receive daily dividends from liquidbees units in my account? I mean, if I sell them in morning & buy back in afternoon , will I still receive daily dividend?

And offcourse 1 question which Mr Srinivas needs to confirm about intraday brokerage charges on liquidbees.

@Srinivas & others are welcome for their valuable inputs.

Thanks

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Can anyone enlighten me.

Thanks

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Please guide.

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Hello Mr @nithin

Please come to my rescue & show me the light.
I am in darkness. Take me to the light.

Please read my previous post & enlighten me.

Thanks

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Yes you can exit the liquidbees positions, use the funds realized from that for intraday trades. You can then buy back the liquid bees before the end of day. There is always buyers/sellers available for liquidbees during trading hours. Liquidity is of no issue. They typically have been yielding over 6% annualized.

If you are selling, there is a buyer who is buying it. It is like buying stocks. Yes you will receive dividend, if you sell intraday and buyback before end of day. Brokerage will apply for the trade.

Returns from liquidbees is in terms of more units. So, no the value will always remain constant at 1000.

There are small risks associated if you are trying to trade it on a regular basis for shorter periods and interest rates in the economy start shooting up. But by shorter periods, I don’t mean intraday. There could be a scenario where you didn’t make any return holding onto the liquidbees for a few months.

Suggest you to read this

https://www.reliancemutual.com/FundsAndPerformance/Pages/Rshares-Liquid-BeES.aspx

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Thanks Mr. Nithin! Sounds convincing but one problem. It belongs to Reliance Anil ambani group!!

Is it really trustable? If tomorrow the owner anil ambani files for bankruptcy. This liquidbees may crash overnight.

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ah, that shouldn’t matter in any way. The AMC managing is essentially just a fund manager. They have no right on the assets which belongs to the clients. You can see everything the liquidfund has invested in on that earlier link I shared with you.

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Thanks!

15

Any other good etf likes liquid bees for parking short term funds ?

Found many mf but they’re not etf
So not instant payoff

Any suggestions plz?

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Dear @nithin can u please explain why dividend declared daily is not being credited to my kite holdings nor is it showing in my dp holding statement…it is not a decimal figure as well… really clueless here … have already raised a ticket …

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Dividends are declared daily but credited once a month. Fractional units won’t show up on Kite, however, you can register on CDSL easi if you wish check these units. The process is explained here

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Question - Is dividend earned on LIQUIDBEES on weekends too or is it only Monday to Friday?

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Yep, dividends accrue on weekends too.

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Just a note - dividends accrue only from T+2 - aka when you get the delivery of the share… so if you buy on friday, there wont be any dividend till tuesday.