@nmuthu Sorry for the delay. Both Liquid ETFs and liquid mutual funds invest in similar short term debt instruments. The difference is that ETFs trade on exchanges like stocks, while mutual funds are bought and sold directly from the fund house at day end NAV.
Debt mutual funds invests in G-Secs and corporate bonds. It’s a safe way to park your money. They’re fixed-income instruments, meaning they pay interest and don’t have the volatile nature like stocks.
Liquidcase is an ETF (Exchange Traded Fund), which means you can buy and sell it like a stock on the exchange. It’s India’s first liquid ETF with a Growth NAV structure. This means that instead of paying out dividends, returns are reflected in its daily NAV movement. Most liquid ETFs credit dividends, and you get taxed on them.
In Liquidcase, it reinvests returns within the fund, you’re only taxed when you sell the ETF, making it more tax-efficient.
Like mentioned earlier, since it’s an ETF with good liquidity, you can easily sell it in the secondary market whenever you need cash. Check out this thread: