I read an year-old post here on TQ&A that said the fund’s actual returns are much lower than those mentioned on its website as a DDT of 28% is charged on the dividend payments. On looking up the current DDT rate online, I found it to be much lower at 17%.
Can Liquid BeES generate a higher return than Kotak’s savings a/c, which offers a 5% interest rate?
Afraid not. But the dividends from Liquidbees are tax-free in your hands. The pre-tax yields are around 5.7-6% ish.
I calculated and I’m getting around 4% from Liquid Bees. I have kept some part for F&O trading.
Other money, I now usually have in IDFC which pays 7%. All my orders are in MIS and once executed, I transfer the money and convert-to-delivery.