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Hello All,
I learn that liquidbees ETF is primarily of TREPS. Is that very same as preserving cash in checking account?
Say like I’ve some 2L and need to hold this cash secure outdoors of financial institution and in digital kind.
Be aware: – I’m solely asking within the perspective of parking cash as it’s danger free
Yeah it needs to be secure. However we get unfavorable yield as of late so you’re shedding cash after inflation. In order that’s price of danger free.
I want in a single day mutual funds over this. In addition they put money into treps and related stuff with no credit score danger.
Liquid bees has excessive expense ratio + transaction fees + curiosity paid via dividends so you need to pay tax on curiosity yearly ( solely related should you can maintain for 3+ years). Additionally getting fractional dividends is a problem.
Liquidbees is giving lesser yield these days than even financial institution financial savings account.
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Yeah, I do know unfavorable returns and inflation however I’m solely discovering an answer to maintain my emergency funds. It’s simply 8 months wage.
I had that as FD in LVB financial institution and went via some sleepless nights after they stated moratorium.
Does it is sensible to maintain liquidbees as emergency fund? They do have sovereign assure.
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No, no at as funding however looking for a greater resolution for emergency fund. Like having 8 months as wage as secure incase issues go sideways one thing like that.
How does one hold emergency funds ?
Please don’t say bodily gold and utilizing that as mortgage. I want one thing digital
In a single day and Liquid mutual funds needs to be good. You’ll be able to put money into them on Coin.
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Emergency fund is one thing you must get entry to immediately, not day T+3,T+5 and god forbid there are two settlement holidays plus one other 2 days due to a weekend.
Should you dont belief your financial institution, open an A/C with SBI and hold your funds there, they usually have instantaneous FD liquidation too so that you don’t have to get a nasty return both.
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Some in financial institution.
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Some in Liquid funds which assist instantaneous withdrawal. Max is 50k/90% per fund so can unfold it into a number of liquid funds. Undecided if coin permits instantaneous withdrawal, however you must have the ability to do it from MF web site.
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Liquid bees needs to be secure, however in a single day funds is comparable and a lot better possibility.
Liquid funds do have small credit score danger. They could put money into AAA however AAA can go straight to junk – very not often, however it has occurred ( ILFS ).
Downside can get compounded if costs are usually not instantly mirrored/fund shouldn’t be locked and enormous holders take out cash. To service them, funds promote good a part of portfolio and individuals who didn’t know find yourself with extra junk. this has occurred too and that i don’t belief Mutual funds to behave in curiosity of small traders based mostly on previous actions.
So perceive this. Downside is exceedingly unlikely, however subject exists. I nonetheless hold some cash, round 60k every throughout a number of funds as instantaneous works effectively. However for buying and selling capital which will get pledged for comfort ( much less settlement headache + additionally some additional returns), i exploit in a single day funds as they’ve liquid collateral. Gilt needs to be high-quality too, though its extra unstable since we solely have long run gilt funds as of late.
In a single day Fund is the very best resolution for you.
I see liquidbees all the time has liquidity so I can promote it anytime in market. In a day or two I can get again cash. How does it differ going to in a single day funds?
Truthfully I’m nonetheless amazed SBI didn’t announce moratorium regardless of all of the scams happening .
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i by no means stated in a single day over liquid funds, attempt truly counting how lengthy it takes to promote/redeem any of these and truly getting money within the financial institution a/c vs FD liquidation which is instantaneous and higher rate of interest.
bcos you have been born yesterday
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