Liquid Bees, Idle Funds, Etc


With regard to the liquid bees, can anyone clarify the following (if u r not sure of please do not answer):

  1. Can I use the funds to buy stocks immediately after selling liquid bees, or I need to wait for the T+2 settlement time.

  2. The reverse of the case mentioned in the preceding question: Can I buy liquid bees immediately after selling stocks or do I need to wait for T+2 settlement time?

  3. Which method is better: pledging liquid bees for futures or having fund available in the trading account for futures?

  4. If one has IDFC 3-in-1 account, where the interest rate is 7%, still it is advisable to keep the idle fund as liquid bees.

  5. Is the Nippon India Luquid BeES ETF only liquid Bees exist or are there alternatives to these?

Thank You,

1.You can buy stocks immediately, no need of T+2
2 . You can buy Liquid bees no need to wait
3. It depends on your holding time of Liquid bees.
4. If you can make 2% extra on your Liquid money? It’s a good choice. Money management is Key.
5. Dsp Liquid Etf also available.

Thank you

Along the same line to the preceding questions can anyone please clarify:

  1. Like luquid bees, can one sell ICICI prudential Overnight Fund and immediately on the same day use the funds to buy stocks?

  2. Which is is better in what sense between i.e. Liquid bees vs overnight funds.

  3. How is the ICICI Prudential Liquid ETF (available on kite) is different from the ICICI Pru Overnight funds? Which one is preferable in what circumstances.

Thanks in advance,

  1. I think overnight fund is considered as Mutual funds and hence T+2 applicable
  2. Both are same, if you’re not sure make your investment 50:50 in both instruments
    3.Yes ETFs are different from Overnight funds. Better to choose Liquid bees if you’re opting for Liquid ETFs.

Also visit Zerodha Varsity they have few good videos on Debt/ Liquid funds & ETFs. Which will enable to take better decision.

Overnight/liquid Mutual funds have T+1 settlement but you should send the order before the cut-off time.
i think it is 11:30am in covid schedule otherwise order processed next day.

Thanks very much!

BTW, if I am not wrong the expense ration on liquidbees is ~0.5%, which is a substantial fraction if the holding period is an overnight or a couple of days. Is it that 0.5% annually, so if one holds for 1 days, the er would be (0.5/365)/100?