Which is the best Debt ETF/MF to pledge for F&O trading?
I go for money market funds.
Any specific AMC you prefer?
Every time I go for a different one. Lol.
Logic being if I want to redeem I will redeem the one which I bought last. So that the one which I bought first can enjoy period of holding benefit.
The ones I use
- SBI
- Nippon
- HDFC
- Adithya Birla.
I used to like Liquid funds but lately I prefer treasury Bonds since retail participants are allowed to invest in them now.
Overnight works best for me. Probably safest option. Might add up small portion of gilt funds later.
What’s the annualised return here ??
Very bad same with liquid Bees. They’re around the SB of 2.5% (in rising rate scenario bit better else worse)
I just keep some LB for emergency funding incase can transfer via bank etc
MMF + growth option is the best, considering being able to pledge. Many dynamic Debt MF are there but can’t be pledged although those funds will switch b/w treasury/corporate/ LT/ST to achieve higher returns.
IDFC Crisil 2027 Gilt fund.
Since, it holds govt. securities, it is treated as cash equivalent. It does carry interest rate risk, though.
Depends on current rate, after covid it was around 3. Current yield is just above 5, so that’s what we can expect if things don’t change. Actually its 5.4 now, rates keep increasing. Can expect it to be a bit less that liquid funds and in return you have gilts as collateral through CBLO type stuff. Also expense will be lower than liquid.
Liquid bees are similar to overnight i think but have much higher expense.
Government bonds