Liquid bees (Reliance ETF) lower than claimed returns


#1

So I have bought a good amount of Reliance ETF liquid bees to park some of my funds. Have been holding them for the past 3 months. The returns I was expecting was in the range of 5% to 5.5% in my hands, but I am getting units in the range of only 3.8%. On their website, they have claimed they have generated simple annualized (not compounded) returns of 5.67% over the last 15 days, whereas I’ve received only 3.8% simple annualized (average units received over 15 days multiplied by 365)

For 551.94 units, I should be receiving .085 units a day, whereas I am receiving. 058

Can someone clarify the disparity?


#2

Hmmm, even I m seeking answers to my very own queries about liquidbees. But nobody seem to know!!

You can call zerodha customer care Bangalore & tell them to transfer your call to Mr Nithin.

Only he can resolve your queries. He remains very busy so its not possible for him to answer all the queries on this forum.


#3

Look at the returns of the assets they’re holding

That might tell u


#4

They do have a dividend calculator, and I am getting dividends exactly as per that, but then again, that’s only around 3.8% annualized, what does the 5.6% mean then? They show that 10,000 invested will be around 10560 after a year so there’s no question of tax deducted by them.


#5

Return the give are based on interest rate of bond /t-bills etc that they hold in the fund

If their interest rate has come down, nothing reliance mf can do about it.

Kindly look into that
That’ll tell you why return is low

Or call up reliance mf cust care


#6

It’s their claim that they have generated 5.6% annualized in the last 15 days and I’ve received 3,8% annualized for those same 15 days. Called up reliance MF, they are clueless!


#7

Then ccheck again
Also bear in mind, that the returns they give u are dividends, which means a flat 15% dividend tax is cut by them and then given to u.

That might have something to do with it !


#8

@namitjain2890 – Did you have any updates on this thread. I also heavily invested into this to park my money for short term and i have observed the same pattern.


#9

No updates unfortunately. Still the same returns!


#10

LOL , website not updated after change in interest rates.


#11

This is one issue for which you will never receive a response. I personally am led to believe in such situations that Zerodha could be retaining the dividend for itself, because the dividend comes to its own account and then it distributes it proportionately to clients who have pledged the Liquidbees.


#12

any update on the thread?


#13

The reason for disparity could be because you might have opted for the dividend option and the returns shown on the website pertain to growth option. In dividend option dividend distribution tax of approximately 29% is deducted by the fund house and consequently what you receive in your hand is much lower. This option is suitable only for those who fall in the 30% tax bracket. for those in 10% or 20% tax bracket its advisable to choose the growth option where you pay short term capital gains tax at marginal rate of tax based on the tax slab you fall in and if you hold for more than 36 months then long term capital gain tax @ 20% with indexation benefits is available.


#14

There’s no growth option with liquid bees, and my dividends match their calculator. but there’s a disparity between their own claimed “achieved” returns i.e historic returns and their calculator.


#15

Yes true. @vishaldamani Can you please throw some light on growth option and how do we opt for that?


#16

https://www.reliancemutual.com/FundsAndPerformance/Pages/IDC.aspx

Provides the dividend for each day.

Calculator gives returns of around 3.9 % for period Sept 2017 to Sept 2018.


#17

Reliance AMC has a horrible support when it comes to ETF. Most employees have no idea about liquidbees. They think we are talking about liquid mutual funds. I have found DSP Blackrock to be much better when it comes to responding to my queries regarding their LiquidETF.


#18

When you buy a mutual fund you are asked to choose if you want to opt Direct plan or regular plan (Direct plan helps you save on commission paid to broker/advisor) and also if you want to opt for growth or dividend option.


#19

Guys, just wanted to clarify, this is not a traditional mutual fund. It’s an ETF, and they only have daily dividend option.


#20

@vishaldamani , Its ETF. We do not have an option to choose.