Liquidcase pledging: Zerodha member limit reached

[gautham26]

I keep getting the same error whenever I try to pledge my Liquidcase ETF. At this point, I honestly regret buying Liquidcase instead of LiquidBeES.

I contacted customer support, but the only response I received was that the broker’s pledge limit has been exceeded and that I should “keep trying.” That’s not a solution.

If this is a broker-side limitation, why are customers allowed to purchase a product that cannot be pledged when needed? There should either be adequate capacity or clear communication about such restrictions before investors buy the ETF.

I would appreciate a proper explanation, an estimated timeline for resolving this issue, and a meaningful solution instead of being asked to repeatedly retry without any certainty.

[pavinjoseph]

You should check Z’s approved list of securities before purchasing with intend to pledge:

Approved list of securities that can be pledged for margins

@gautham26

regret buying Liquidcase instead of LiquidBeES

Different products with different taxation!

[BB789]

@gautham26

buying Liquidcase instead of LiquidBeES.

Avoid bees. There are other similar liquid etfs like liquid1 for example. Check approved list and invest in those.

[comboman]

I am also getting the same issue. In fact I liuidated some liquid bees and bought liuidcase. Now unable to pledge. Frustrating as no advance notice / advisory was given will buying liquid case

[gautham26]

sir Im talking about zerodha’s liquidcase…

[gautham26]

sir Im talking about zerodha’s liquidcase which is under approved list of securities.

[BB789]

Yeah but it is in red color showing member limit reached.

[loke4300]

EDIT:

was able to pledge LIQUIDCASE today. Had to keep checking each day.

@siva @Ruchi_Porwal @TheGouda : some nudge like feature needs to be added in cases like this where market wide limit is reached. thanks.

[siva]

@loke4300

ome nudge like feature needs to be added in cases like this where market wide limit is reached. thanks.

Yeah, will show message when over all limit also reached, currently we show error message when member limit reached when going to pledge.

[BB789]

Interestingly equivalent mutual funds like Zerodha overnight fund almost doubled their expense ratios - from 0.08% to 0.13%. This seems to be the trend with all overnight funds.

[pavinjoseph]

@BB789

Zerodha overnight fund almost doubled their expense ratios - from 0.08% to 0.13%

With an AUM of 115Cr, the expense ratio of 0.13% is at least understandable.
But LIQUIDCASE has 10.2k Cr AUM and expense ratio of 0.28%!

[BB789]

@pavinjoseph

expense ratio of 0.13% is at least understandable.

Why would expense ratio increase with AUM? Isn’t most costs fixed? if anything, shouldn’t costs decrease?

@pavinjoseph

But LIQUIDCASE has 10.2k Cr AUM and expense ratio of 0.28%!

I’m aware:

Ask me anything about Zerodha Fund House

Why does LIQUIDCASE have a TER of 0.27% while Zerodha Overnight fund has 0.08%, when both invest in the same TREPS? Are there any specific difficulties in managing a ETF over a direct MF?

LIQUIDCASE TER is rising whereas other similar ETF TER has been falling

LIQUIDCASE TER started at around 0.23% and is currently at 0.27%. Given the already falling interest rates, and the AUM increase, I find it hard to justify the increase in expenses. Relatively, the industry average TER for such growth Debt ETF is at 0.19 according to TickerTape. So, why the increase? Do we get notified of any increases? Or is the increase silent? Links: Historical TER of Zerodha: Disclosures - Zerodha Fund House