What is the difference between Nippon India Liquid Fund vs LIQUIDBEES ?
I see the return is slightly higher in Nippon India Liquid Fund (COIN) , what are the differences and risks associated . Please help.
Nippon Liquid fund is a “liquid mutual fund”. It invests in TBills and other short term deposits.
Nippon Liquid ETF (LIQUIDBEES) is a liquid ETF that aims to give returns of 1 day liquid index. It invests only in TREPS. So it is very similar to an “overnight mutual fund”
Liquid mutual funds give more returns than overnight mutual funds, but both are suited for different periods. Liquid mutual funds is better for a timeline of few months to a year. Overnight mutual fund means few days or less than a month.
You can check their exact holdings here - https://mf.nipponindiaim.com/InvestorServices/FactsheetsDocuments/NIMF-FORTNIGHTLY-PORTFOLIO-15th-Nov-24.xls
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Thank You. really Helpful. any insights on Risk ?
Please see their SID document on the website. And zerodha varsity
If 2 bonds carry same returns, something which invests in debt that matures tomorrow (Liquid ETF/overnight fund) is less risky than debt that matures in 6-9 months. Since you are getting your money tomorrow instead of months later.
As risk increases, so do returns. Which is why Liquid fund pays more than Liquid ETFs
Liquid fund
Liquid ETF
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Thank You !
do check LTGILTBEES