I am confused about the dividends in Liquid BeeS. How exactly the dividend works?
I always receive the email that 0.11, 0.03 etc. amount credited to my Demat Account, but how does this increase the value of my investment, because I can’t see any increase in the number of stocks in my Demat account.
In the case of Liquid BeES, each time you receive a dividend of, for example, 0.11 or 0.03, your average purchase price decreases incrementally from 1000.00 to 999.89, 999.86, and so on. This continues until you accumulate enough dividend to purchase one full unit of Liquid BeES. When this happens, your holding increases by one unit, and your average purchase price reverts to 1000.00.
Thanks you for you answer, so when the dividends are being deposited and the avg. price drops, if I sell at that time then will I make a loss?
Is it something like, I should only sell them after the value rounds up?
No, that’s not the case. When you sell, you will always receive Rs 1000.00 per unit. Dividends work to reduce your initial purchase price. For instance, if you buy 1 unit for Rs 1000.00 and receive a dividend, your buying price decreases to Rs 999.90. Consequently, when you sell it, you will still get Rs 1000.00, resulting in a profit of 10 paisa.
Thank you.
So imagine I invested 10,000 rs to buy 10 units. Now if I get some dividends in fraction, let’s say 0.25. So now the buying price drops to 999.90, and then if I sell those 10 units, how much would I get?
the price at which you sell X 10
Thank you for your reply.
That’s my question, so as long as the fractional units don’t round up to 1 unit, I won’t get any profit by selling those 10 units.
So I need to wait for more dividends so that those 0.25 fraction rounds up to 1 eventually and the total units will become 11 and then I can sell all those 11000 with 1000 profit?
Am I getting it right?
No, the fraction of 0.25 that you received as a dividend will remain in your account. Although you won’t be able to sell fractional units, and they won’t be visible in your holdings, you will continue to earn dividends on this 0.25 fraction. You will receive periodic emails informing you about the dividends accumulating in your account. This will continue until you have accumulated a full unit. We cannot predict how many years this process will take, but it is certain to happen. Once you have earned a complete unit, it will be displayed in your holdings, and you can then sell it. Therefore, you can sell your holdings at any time without worrying about the fractional portion.
Okay thanks 
@Serenity - You can sell the fractional units back to the AMC. See this: Step by step guide to redeem fractional units of Liquidbees (Zero paperwork)
Hey @Jayadratha Do we also get dividends for the fractional units.
So imagine I bought 10 liquidbees and I got some dividend, it became 10.11.
Now if I sold the 10 units, as I can’t sell the 0.11 at along with it.
Now, will I get dividends for those 0.11 units ???
For sure. You will keep on getting approx. 6% yearly on the 0.11 unit.