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Goldman Sachs Liquid BEES
Why is it unique? It is the only listed liquid ETF in India and is the first money market ETF in the world. Who can benefit? Useful for active stock market investors.
If you are a long-term investor and hit the stock market once in a while, or are getting there using the equity mutual fund route, Liquid BEES is not for you. Liquid BEES is useful for active investors or traders in the stock market. Instead of leaving your money idle in the savings bank account, you can park it with Liquid BEES. Why not in other liquid funds? This is because it only helps reduce the logistics problem. Unlike other liquid funds, Liquid BEES lets you deal with the same stock broker and the buy or sell transactions can be executed on the same day. It is also useful for stock traders as the NSE accepts holdings in BEES as `security' for non-cash margin purposes. To make life easy for active investors and traders, several brokers also allow buying and selling in Liquid BEES without brokerage. On the other hand, investors in other liquid funds have to redeem it separately and then make payments to a broker for purchases. Even at the time of selling the stocks, they have to take money from brokers and then invest in liquid funds separately.
The fund house always tries to maintain its NAV at `1,000. The gain in the scheme is declared as daily dividend and is mandatorily reinvested in the scheme. Therefore, an investor who withdraws from the scheme after a few days will get the returns as dividend, which is tax-free according to the current taxation laws. Since there is no doubt about its NAV, investors can buy or sell the scheme at `1,000 at any point. It is one of the most actively traded ETFs in India, with an average turnover of `20 crore. There are market makers who wait with large orders to buy it at `999.99 and sell at `1000.01.If you are not in a hurry, you can keep a limit order at `1,000 and it will be executed soon.
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