Using Nippon India ETF Liquid BeES to enhance returns on idle funds

Personal finance
1

Dear community,

I have a decent chunk of cash lying idle in Zerodha most days. The entire amount is meant for trading only, so has to stay in Zerodha or an equivalent broker.

Has someone tried using Liquid bees and then pledging it to enhance returns marginally with the idle cash. The returns are like 2-3% at max which means I am not willing to take a lot of additional effort. But won’t mind 2-3 lacs additional per crore per year if can be done risk free and without much hassle. As far as I can see, the hair cut is 8% which is OK.

Kindly advice. Thank you.

2 Likes
2

You can definitely go with this.

3

In my understanding, 50% must be Cash / Cash Equivalent. Nifty bees are not cash equivalent.

Nifty Bees can go up & down. Liquid bees are stable ₹1000/Unit. More units will be added as interest.

4

Thank you and apologies. I meant liquid bees.

5

Thanks.

6

For cash component you can distribute in diff. Funds types.

  1. SGB gold bond
  2. Money market fund (4-6% returns)
  3. Gilt funds. (4-6%)

Above are better than liquid funds.

3 Likes