Hi All,
I read that liquidbees ETF is primarily of TREPS. Is that same as keeping money in bank account?
Say like I have some 2L and want to keep this money safe outside of bank and in digital form.
Note: - I am only asking in the perspective of parking money as it is risk free
Yeah it should be safe. But we get negative yield these days so you are losing money after inflation. So that’s cost of risk free.
I prefer overnight mutual funds over this. They also invest in treps and similar stuff with no credit risk.
Liquid bees has high expense ratio + transaction charges + interest paid through dividends so you have to pay tax on interest every year ( only relevant if you can hold for 3+ years). Also getting fractional dividends is a hassle.
Liquidbees is giving lesser yield nowadays than even bank savings account.
Yeah, I know negative returns and inflation but I am only finding a solution to keep my emergency funds. It’s just 8 months salary.
I had that as FD in LVB bank and went through some sleepless nights when they said moratorium.
Does it makes sense to keep liquidbees as emergency fund? They do have sovereign guarantee.
No, no at as investment but trying to find a better solution for emergency fund. Like having 8 months as salary as safe incase things go sideways something like that.
How does one keep emergency funds ?
Please don’t say physical gold and using that as mortgage. I need something digital 
Overnight and Liquid mutual funds should be good. You can invest in them on Coin.
Emergency fund is something you should get access to instantly, not day T+3,T+5 and god forbid there are two settlement holidays plus another 2 days because of a weekend.
If you dont trust your bank, open an A/C with SBI and keep your funds there, and they have instant FD liquidation too so you don’t need to get a bad return either.
Some in bank.
Some in Liquid funds which support instant withdrawal. Max is 50k/90% per fund so can spread it into multiple liquid funds. Not sure if coin allows instant withdrawal, but you should be able to do it from MF website.
Liquid bees should be safe, but overnight funds is similar and much better option.
Liquid funds do have small credit risk. They might invest in AAA but AAA can go straight to junk - very rarely, but it has happened ( ILFS ).
Problem can get compounded if prices are not immediately reflected/fund is not locked and large holders take out money. To service them, funds sell good part of portfolio and people who did not know end up with more junk. this has happened too and i do not trust Mutual funds to act in interest of small investors based on past actions.
So understand this. Problem is exceedingly unlikely, but issue exists. I still keep some money, around 60k each across multiple funds as instant works well. But for trading capital which gets pledged for convenience ( less settlement headache + also some extra returns), i use overnight funds as they have liquid collateral. Gilt should be fine too, although its more volatile since we only have long term gilt funds these days.
Overnight Fund is the best solution for you.
I see liquidbees always has liquidity so I can sell it anytime in market. In a day or two I can get back money. How does it differ going to overnight funds?
Honestly I am still amazed SBI didn’t announce moratorium despite all the scams going on .
i never said overnight over liquid funds, try actually counting how long it takes to sell/redeem any of those and actually getting cash in the bank a/c vs FD liquidation which is instant and better interest rate.
bcos you were born yesterday 
Emergency funds you can keep it in liquid funds in Non DEMAT mode
I have invested my emergency funds in Instant redeem liquid funds (30 mins time to reach bank even on weekends)- Currently ICICI, AXIS, NIPPON, PGIM, TATA has this facility.
IMP: Try to use Non DEMAT mode to use this facility. I am using Kuvera to invest on this
So if we redeem from Kuvera from the above mentioned funds on Saturday, even after 3pm we can expect instant amount within 30min in our bank account ?
yes you are right. It’s 24*7 @Stonecold. 90% of fund you can get and limit is 50K per fund and 2L max