LIQUIDBEES monthly returns

Like Aditya birla money manager fund
Hdfc Money market fund. The haircut is 10% and is considered as cash equivalent. I am also shifting from liquid funds to money market funds for pledging.

Just out of curiosity!
The API access and algo, are they worth it for smaller scale investor (cap <2L)

For redeeming mfs , order should be placed before 2 pm ? if placed before specified time also will funds will be credited in trading account by T+1 day ? LQB can be sold instant and 80% values will be reflected immediately in trading account , im asking for parking in LQB for timebeing with equity trades ( not for fno ) .Thanks.

Hi, Let me put it this way. This a answer is very easily arrived if you do the cost benefit analysis yourself. The cost of having the API is 2000/- per month or 24k for the entire year (in case of Zerodha, and there are some free APIs as well like Alice Blue) The Algo, if you were to code yourselves, there is no additional cost, but if you need to hire a programmer, that would be a onetime cost of anywhere between 10k to 50k.

So, now you know the cost.

When you are operating with a small account say 2L this could add up to 15% to 35% on your capital per year. Now the question is whether you have a system that spins above that percentage of CAGR - that’s for you to answer.

The other consideration is whether your system is so dynamic and requires quick response that is hard to achieve manually.

I hope this helps you!

Everything will work when there is a edge in our system, or at least in our approach.
Thanks for your answer Rajeesh Sir.

Not sure if this is an old comment, but instead of waiting to reach whole number (which still may have some fractional unit leftovers), you may sell it off-market back to AMC.

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Thanks Rupesh.
I had read your post earlier and it is very informative.

It’s just that my amount is really small, so it’s not worth the effort. I’ll wait out for some months and get rid of it

Thanks again

Btw, fractional units don’t yield dividends. Only whole units do. Just saying it because I had learned it along the way. I had sold the whole units leaving behind the fractional units thinking when they turn into whole units, will sell them too. Waited for a couple of months and nothing happened. Little did I know back then that fractional units are leftovers that don’t grow. And when I discovered it, I understood it is better to save time and pay Rs 25 offline transaction fees to get rid of these fractional units lingering in my account. :sweat_smile:


Yup. That’s why I haven’t sold my whole units yet. They are slowly trickling fractional units. few more months and I’ll be done with it.

For me my fractional units are also yielding dividends.

you can see .0001 is increased. That has happened in both of my account.

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That must be a pending dividend payout. It’s credited on monthly basis.

Nope @rupeshmandal , i am getting montly dividend even on fraction unit. May be for you your balance was .1xx so even for lowest .001 dividend, it was taking months.

See as on 1st April, I had .775

Buy July it become .780

& Today It is .782

As I have mentioned in this post, I had 0.254 fractional units of Liquidbees and as per my account statement from September 2020 to Feb 2021 I didn’t receive any dividends. I had read somewhere too on this forum that fractional units don’t pay dividends.

@Akash_Shah @Bhuvan can you please tell me if there are some changes with regards to dividends yield of fractional units of liquidbees?
Because as per my knowledge the fractional units don’t pay dividends. Now if my understanding is wrong, I would have to correct all my past posts related to this subject.

I’m wondering why people are still buying Liquidbees. Forget about fraction issues, it makes absolutely no sense to stay invested for a meagre 2% pa…when you have better alternatives.

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Since @nithin had mentioned on this forum that Zerodha AMC is not in sight anywhere soon, so I shared the idea of a low-cost growth-based liquid ETF/ Fund instead of dividend-based, with Prateek Oswal who heads the passive investing vertical of Motilal Oswal and he has responded positively to it.

It may turn out to be a reality as Motilal AMC has listened to the people and come up with such passive funds/ ETFs in the past.

So if it turns out to be a reality, it would be great for all.

@rupeshmandal even if MOSL launches new liquid ETF the issue would be with liquidity/volume & ofcourse returns…they may also give you 2% pa in current scenario…i don’t know your objective in chasing liquid ETFs though…

In the current economic conditions, you can’t blame the liquid funds/ etf. Yes it’s true from investor’s pov that there isn’t much value in liquid funds now.
But later when things are better, a growth-based low-TER liquid etf would be better than divided based. That’s the point i was making.

I still have some whole units so can’t really confirm whether fraction gives dividend. But I tried running you scenario on Nippon website dividend calculator and it gives out result of 0.003. So probably fraction does pay dividend.

But again i have no experience on subject.

They do, it’s always been the case.

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Thanks to @atvt27 and as per the discussion on this thread, Liquidbees fractional units do give dividends. In my above post, I had mentioned that Liquidbees fractional units don’t pay dividends. I stand corrected here. Apologies, if the incorrect information published earlier has misled anyone.

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