Are you curious to know what is LiquidBees? You have come to the right place as I am going to tell you everything about LiquidBees in a very simple explanation. Without further discussion let’s begin to know what is LiquidBees?
In the world of investment and finance, LiquidBees has been gaining attention as an innovative and versatile financial instrument. But what exactly is LiquidBees, and how does it work? In this blog, we will dive into the world of LiquidBees, exploring its meaning, benefits, and how it can serve as a valuable addition to your investment portfolio.
What Is LiquidBees?
LiquidBees is a financial product offered by mutual funds in India, designed to provide investors with a convenient and highly liquid alternative to traditional savings accounts or fixed deposits. The term “LiquidBees” is an abbreviation of “Liquid Benefit Securities,” highlighting its focus on providing a secure and liquid investment option.
Key Features Of LiquidBees:
- Open-Ended Mutual Fund: LiquidBees is an open-ended mutual fund, meaning that investors can buy or sell units of LiquidBees at any time, subject to the availability of units. This feature ensures high liquidity.
- Low Risk: LiquidBees primarily invest in short-term debt instruments, money market securities, and other highly rated fixed-income instruments. As a result, they are considered low-risk investments compared to equities or long-term debt funds.
- Stable Returns: LiquidBees aim to provide stable and relatively predictable returns. While the returns may not be as high as some riskier investments, they are typically higher than those offered by regular savings accounts.
- Daily Dividends: LiquidBees typically distribute dividends daily. These dividends are a portion of the interest earned on the underlying portfolio of securities.
- Redemption: Investors can redeem their LiquidBees units on any business day, and the redemption proceeds are generally credited to their bank accounts within one business day. This quick redemption process ensures high liquidity.
- No Entry or Exit Load: LiquidBees usually do not charge entry or exit loads, making it cost-effective for investors.
Benefits Of Investing In LiquidBees:
- High Liquidity: LiquidBees are highly liquid, allowing investors to access their funds quickly when needed. This makes them an ideal choice for emergency funds or short-term financial goals.
- Safety: LiquidBees invest in low-risk securities, which helps preserve capital and reduce the risk of losses. They are an attractive option for conservative investors.
- Competitive Returns: While LiquidBees offer safety and liquidity, they also provide returns that are often higher than those of traditional savings accounts or fixed deposits.
- Tax Efficiency: The tax treatment of LiquidBees is favorable. If held for more than three years, the gains are considered long-term capital gains, which are taxed at a lower rate.
- Diversification: By investing in LiquidBees, investors gain exposure to a diversified portfolio of short-term debt instruments, reducing concentration risk.
LiquidBees offer investors a safe, liquid, and potentially lucrative alternative to traditional savings accounts and fixed deposits. They are particularly well-suited for those seeking a short-term investment with minimal risk. However, it’s essential to conduct thorough research, understand the fund’s objectives, and consider your investment goals and risk tolerance before investing in LiquidBees or any other financial instrument. With careful consideration and informed decisions, you can make LiquidBees a valuable component of your investment portfolio.
What Is The Use Of LiquidBees?
Liquid BeeS/ DSP BlackRock liquid ETFs are exchange-traded funds (ETFs) that function similarly to shares. These funds aim to increase returns and mitigate price risk by investing in a diversified portfolio consisting of call money, short-term securities, and money market instruments with short maturities.
Why Is LiquidBees Always At 1000?
The way LiquidBees works is that each ETF will have a NAV of 1000, and the fund tries to keep the NAV at 1000. If the price goes to 1002 the next day, the Rs. 2 gets reinvested into the scheme. And once a month, based on how many days you owned your units, you get a dividend of the units created from the reinvestment.
What Is The Profit Of Liquid Bees?
1. Current NAV: The Current Net Asset Value of the Nippon India ETF Nifty 1D Rate Liquid BeES as of Aug 29, 2023 is Rs 1,000.00 for IDCW Daily option of its Regular plan. 2. Returns: Its trailing returns over different time periods are: 5.53% (1yr), 3.64% (3yr), 3.7% (5yr) and 5.84% (since launch).
How Do We Earn In Liquid Bees?
In case of LiquidBees, returns are based on gross dividend per unit declared by the Fund. Performance of dividend option would be Net of Dividend distribution tax, if any. Face value of Nippon India ETF Liquid BeES is Rs. 1000.
What is liquid ETF & liquidbees?