Liquid Bees as Collateral - Other Options

Hi All.

I find Liquid Bees as Collateral a Bit messy.

It gives dividends regularly in the form of additional units. (Problem 1) The rate of return is different if you own it versus when they are pledged (When they are in the Pool account). (Problem 2) Second, you need to wait till say 24 th or 25th of every month when Zerodha calculates your share of the dividend from their Pooled account and credits it. (Problem 3) 3) Even then it shows up upruptly in your Kite/Console and the new units shows as a Discrepancy and you need to show the date when the new units were added and the price they were added. The price is a problem because it does not accept Zero. (Problem 4) Last but not the least the return seems very very low right now.

By constrast pledging Bharat Bond is very elegant. All dividends etc. increase the price of the Bond and there is no issue of worrying about whether the right amount of credit has been given.

However Bharat Bond counts as Equity Collateral while Liquid Bees counts as Cash Collateral. Are there any better Solutions than Liquid Bees for Cash Collateral.

I would also like the answer in the context of the new pledging system.


Lets choose liquid fund growth option

Zerodha has made a excel sheet for all instruments kindly refer it its very useful

Thank you for your Input. It helped.

Please share the link

You check all approved securitues for pledging here.

Avoid Liquidbees until it comes with a growth option (instead of dividend) and TER is reduced significantly.

1 Like