Free Cash lying in trading account

Thanks guys for all the messages - Return wise which is the best liquid funds that can be pledged in Zerodha in order to use it for F&O trading.

The link which I have shared below helps you calculate the dividends you have received during a period for liquid bees.

https://www.reliancemutual.com/FundsAndPerformance/Pages/IDC.aspx

Let us take an example. Assume that I have 1000 units of liquid bees in your account. If I select the time interval as shown in the screenshot then I would receive 38.600 as dividend units which means I made approx 3.86 % in returns for that year.

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I would keep upto 2 lakh rupees in digibank savings account, so it earns fixed interest rate of 6% for first 1 lakh and 7% for the next 1 lakh. Fixed interest rate and instant liquidity.

Not only this, while filing income tax returns, under section 80TTA, I will get exemption of Rs 10,000 bank interest. So the Rs 10,000 bank interest is tax-free as well.

Double benefit :slight_smile:

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@ZT7094 @CoolBird @Nawal_Kashyap

We will be coming out with an option to pledge liquid funds very soon. Also, if your objective is to gain better returns than liquid bees and avail collateral as well so investing in a liquid fund (growth option) is a much better alternative since the the units will be in demat form and you will receive the amount as well in your trading account upon redemption :slight_smile:

Thanks Fasir… when will that soon be please
:grinning:

Apologies for misspelling your name faisr

that’s great Faisr…can you pls name the liquid funds you are talking about…how do we buy this…from kite?

@ZT7094, will keep you posted once this is live. Hopefully you should be able to do it this month.

@CoolBird, these liquid funds are available through COIN. The ones available on KITE are ETFs and not the usual mutual funds. Since all mutual funds purchased through COIN will be in demat mode, so you will be able to pledge these as well. You can search for different liquid funds are per your criteria from the COIN mobile app.

@siva @faisr, how to sell the partial units of liquidbees that are present in the demat but not shown in kite?

Hi @faisr, will those liquid mutual fund, when pledged, be treated as cash equivalents similar as liquidbees?

Will update once we come out with those.

Add Rs 16 debit each time you sell (similar to a stock) and you will see all the returns gets washed out.

Atif never ever pledge ur shares and take a margin…it is such a risky idea…people don’t understand the implications…ever heard. Promoters pledging shares? Do we invest in such a company? Suppose u pledged a gold ETF share on a intraday… If u run into loss they can sell ur shares …otherwise u have to convert margin pledge to margin cash…wat if gold price rises as it does today? U will not be able to enjoy the ride…

Further if ur pledged share falls it is another more painful scenario…

Hi Faisr… Do you have some updated on allowing liquid funds as collateral?