Query about holding Liquidbees for short term

General
1

Hello,

If I trade only on one day of the week (example: Friday), and for the rest of the week - I don’t want my cash to stay idle, would it make sense to invest in liquidbees?

Example: If I have 10 lakhs in cash.
At 3:20 on Friday, I buy 1000 liquidbees worth 10 lakhs.
On Thursday, I sell the 1000 liquidbees - so that by Friday morning, I have the entire sum of 10 lakhs in my account.

Note: I don’t want to pledge - as I wish to use the entire sum of 10 lakhs.

Questions:

  1. Do I receive dividends on the day I buy liquidbees or do the dividends start getting credited after the liquidbees hit my DEMAT account?

  2. Do I receive dividends for 6 days (Friday to Wednesday) or 7 days (Friday to Thursday)?

  3. As per my understanding, there is no STT applicable. So as per the brokerage calculator, the total charges for this buy + sell transaction would be INR 244.99 (as per Zerodha’s brokerage calculator minus STT).
    Is this correct?

  4. According to this link, as of now, we are receiving 0.1512 dividends everyday.

So for 1000 liquidbees, I should be receiving INR 151.2 worth of liquidbees per day x 6 days (or 7?) = INR 907.2.
So that’s INR 907.2 minus INR 244.99 (charges) = INR 662.21 of profit.
Which comes up to to 0.066% ROI every week.

Is my calculation correct?

Thank you.

2

Only after you have it in your demat. And settlement is T+1, so chances are, in what you are trying to do, you will be getting interest only for probably 5 days of week

Instead of using 1 days number and extrapolating, Use dividend calculator of MF to get actual numbers for certain week spread acorss year. That will give better idea. Last couple of months liquidity is tight and overnight rates are high, but that may not be case throughout the year

Also note that number shown are gross earnings. What you will be getting is post TDS, so actual number if unit getting credited will be less

Actual will be less due to TDS and number of days of week being considered.

I seriously hope you are doing this only as an academic exercise and not really want to implement this. If you actually have this need, I think you are better off just keeping your money in saving account. Use Zerodha IDFC 3in1 or something and returns would be much higher with minimal hassle.

3

Withdrawing to sB account is better. If you have account with zerodha, open one in IDFC. You have option of one click transfer. Interest rate is decent around 5 percent. No charges for transfer of funds also. Net basis I feel you will benefit here though I have not personally done the math.

4

Recent changes must have LB also in T+1 settlement

1 Like
5

correct

but the stamp duty is still there