How do I use overnight Investment Products (liquid funds) of BSE?

General
1

Hello,

I wanted to understand about the overnight liquidity facility of BSE.

  1. What are the steps I need to follow for it through Zerodha?

  2. Are the gains taxable?

  3. Does the income/dividend come as cash or as units of the fund?

  4. Any more documents/links to gain further clarity.

Thank You

Sudipta

2

1. We are in the process of enabling mutual funds trading at Zerodha, so not possible for now. 

2. Yep, they are just like any other debt funds. Short term capital gains taxed based on the tax slab you fall in (similar to fixed deposits or savings bank rate). 

3. Dividend as units, but the good thing is that you can redeem fractional units as well. 

4. Check this link and this ppt. 

1 Like
3

Hi Nitin, how far are you witht this process? did you enable overnight liquid fund?

4

@nithin @siva-reddy @faisr @Bhuvan just wanted to check if we can buy Overnight investment products from Kite now? If not, what are the best alternatives to park funds overnight and utilize them next trading day? I guess, liquidbees has DP & other transaction charges, whereas these BSE & NSE overnight investment funds doesn’t have the same.

5

The issue with mutual funds is that you can’t exit them and get instant credit to purchase other stocks (like liquid bees). So the only real option if you want to do that is liquid bees. If you have not intention to use that proceed for buying stocks, you can chose any mutual fund and buy it on Coin.