We launched our first fund at Zerodha Fund Home 18 months in the past, with the @smallcase.
Quoting @nithin from his tweet:
The thought was to supply easy and cost-efficient index funds and ETFs and keep direct solely. Regardless of not being loud concerning the AMC, 7 lakh buyers have saved ₹6,400 crores in our funds.
The hero fund is LIQUIDCASE ETF at ₹4,700 crores, and that is all in 15 months. LIQUIDCASE must be one of the vital profitable Indian retail ETF launches ever.
Because of @VishalJain and the crew for constructing this and all the time being round to assist on TradingQnA too.
Right here’s an replace from Vishal Jain on the place we’re and what’s forward at Zerodha Fund Home. Give it a learn:
Z-Join by Zerodha – 28 Might 25
Replace on Zerodha Fund Home
As we take inventory of our journey to date, it’s humbling to see how far we’ve are available such a short while. What began as an concept —to make investing really
Est. studying time: 5 minutes
Lastly, Mutual fund investments are topic to market dangers. Learn all scheme-related paperwork rigorously. You understand the drill. 
9 Likes
Question on Liquidcase.
When clicking on the hyperlink for Liquidcase, I discover beneath Benchmark, SB fee as 2.85%. It says charges sourced from RBI and once I click on on that hyperlink, it simply reveals RBI web site. Are you able to please let me know wherein part beneath RBI web site, will we get this knowledge.
I thought Banks had been allowed to repair the rate of interest and RBI don’t management the identical. It is for that reason, you can find IDFC giving 7% while SBI as of right this moment is giving 2.70% and tiered.The Benchmark fee stay fastened for 1yr, 2yr and 3yr.I’m positive there have to be some adjustments in charges over a interval of three years, discover it troublesome to imagine that the speed remained identical for every of the three buckets.
Additionally how is the benchmark arrived, is it the bottom fee supplied by banking sector in India or a mean taken or is it from RBi web site. I need to see this part in RBI, tried looking however couldn’t discover the identical.
Wish to understand how this benchmark is arrived. it can be crucial that this fee ought to be appropriate as that is the speed based mostly on which the liquid case is in contrast.
Axix, icici and Kotak is on tiered foundation from 2.75% to three.25percentIDFC – 3 to 7percentYes 3 to fivepercentDCB – 1.5 to 7percentCanara – 2.70 to 4%
Is the benchmark computed based mostly on PSU financial institution, then it has some resemblence of common of two.85. If that’s the case this ought to be talked about as a be aware in order that buyers are conscious of the information being offered.
Identical factor with inflation knowledge, beneath sources, it opens up IMF web site and I couldn’t discover the speed.
@VishalJain
Associated question – The return from this liquid case during the last one yr was 6.52%. That is after the expense ratio of 0.27%. The aim is to park free float funds into this fund as an alternative of Financial institution SB account. So this additionally signifies that once I promote I can be topic to STCG of 20%. So is my actual return approx 5.12%. Is that this an accurate assumption.
1 Like
Onwards and upwards! Kudos to the Zerodha Fund Home crew. Invested within the NLM250 because the NFO.
Lately stumbled upon smallcases from ZFH, why no promotion/advertising and marketing for these? The three-in-1 Multi Asset Allocation seems fairly fascinating.
Wish to understand how this benchmark is arrived. it can be crucial that this fee ought to be appropriate as that is the speed based mostly on which the liquid case is in contrast.
IIUC, the benchmark for a fund is regardless of the fund needs to benchmark itself towards.(topic to any restrictions specified within the securities laws.)
The selection of the RBI “Financial savings Deposit Charge” because the benchmark seems to be an affordable one, as this fund goals to be extraordinarily liquid (nearly like an SB account).
From what i collect, the Financial savings Deposit Charge was deregulated in India with impact from October 25, 2011, regardless of sturdy push-back from the retail banks. Retail banks are now not restricted/assured the RBI printed Financial savings Deposit Charge within the financial savings accounts that the retail banks provide. As such, the RBI printed fee is only a reference fee that can be utilized as a benchmark – which this fund seems to be doing.
When clicking on the hyperlink for Liquidcase, I discover beneath Benchmark, SB fee as 2.85%. It says charges sourced from RBI and once I click on on that hyperlink, it simply reveals RBI web site.
The present/newest Financial savings Deposit Charge on the RBI websiteappears to be listed beneath Lending / Deposit Charges part.
Additionally, looking on the RBI website for the precise phrase Ratios and Rateslists a bunch of outcomes that embrace weekly printed “Ratios and Charges” circulars.
PDFs of the identical seem like at the moment accessible on the linkhttps://web site.rbi.org.in/paperwork/87730/39710791/T5_DDMMMYYYY.pdf
For example right here’s the latest one from 23-MAY-2025.
Identical factor with inflation knowledge, beneath sources, it opens up IMF web site and I couldn’t discover the speed.
A chart with annual GDP and Inflation (CPI?) is out there for India at this web page on the IMF web site(and additional particulars in numerous studies accessible on the web page).
2 Likes
The present/newest Financial savings Deposit Charge on the RBI web site
I discovered this. Thanks. I used to be critically pondering of investing, therefore began studying, however obtained postpone as I get higher charges from a Financial institution.
What about this, Is my understanding appropriate.
Associated question – The return from this liquid case during the last one yr was 6.52%. That is after the expense ratio of 0.27%. The aim is to park free float funds into this fund as an alternative of Financial institution SB account. So this additionally signifies that once I promote I can be topic to STCG of 20%. So is my actual return approx 5.12%. Is that this an accurate assumption.
Associated question – The return from this liquid case during the last one yr was 6.52%. That is after the expense ratio of 0.27%. The aim is to park free float funds into this fund as an alternative of Financial institution SB account. So this additionally signifies that once I promote I can be topic to STCG of 20%. So is my actual return approx 5.12%. Is that this an accurate assumption.
Apparently the STCG-tax on LIQUIDCASE is charged as per one’s income-tax-slab.Supply: This current dialogue thread.
1 Like
Additionally how is the benchmark arrived, is it the bottom fee supplied by banking sector in India or a mean taken or is it from RBi web site. I need to see this part in RBI, tried looking however couldn’t discover the identical.
Financial institution FD gave extra returns than LIQUIDCASE. Solely benefit is you could pledge it and use as a “Money element” with 6.00% haircut. IMO this fund is nice provided that you pledge it and use it for buying and selling.
I believe LIQUIDCASE gave greatest returns as in comparison with the opposite money element choices. Subsequent greatest by way of return is LIQUIDADD.
1 Like
IMO this fund is nice provided that you pledge it and use it for buying and selling and promote it solely after 2 years so that you simply pay much less tax. (LTCG at 12.5%)
Why 12.5% ? This goes to slab.
Tax ImplicationAll beneficial properties/income from the models of the Liquid ETFs, no matter the holding interval, can be thought of as Brief Time period Capital Beneficial properties (STCG) and can be taxed as per the tax slab of the investor (plus 4% cess and surcharge, if any).
zerodhafundhouse.com
Zerodha Nifty 1D Charge Liquid ETF | LIQUIDCASE – Make investments Now
A easy ETF for successfully managing further money. Zerodha Nifty 1D Charge Liquid ETF invests in TREPS and goals to supply liquidity with comparatively low danger
1 Like
LTCG (>2 years) is 12.5% STCG (< 2 years) is as per slab
Nope, not any extra if invested ‘On or After 1st April 2023’. Debt funds are handled like junk today by way of taxation.
Hybrid funds which have greater than 35% however lower than 65% Fairness have this fee now
cleartax
Taxation On Debt Mutual Funds
Tax on Debt Mutual Funds: Modification to Finance Invoice 2023 has scrapped the indexation profit on capital beneficial properties from debt mutual funds. Examine the tax outflow earlier than and after the adjustments had been launched on this article.
cleartax
Mutual Fund Taxation – How Mutual Funds Are Taxed?
Full information on mutual fund taxation. Know the way completely different mutual funds are taxed in a special method, relying on the kind of mutual fund & the funding holding interval.
2 Likes
Apparently the STCG-tax on LIQUIDCASE is charged as per one’s income-tax-slab.
So,
Financial institution SB ac curiosity can be on slab fee, Liquidcase can be on slab fee – internet impact identical.
Few personal banks other than SFB, provide greater charges than Liquidcase and no must pay Expense ratio of 0.27% and non zerodha prospects should pay brokerage as nicely like icici direct.
I believe the benefit is for merchants like @Jack_R identified, who can pledge this for his or her trades as towards funds in SB account.
From return perspective for a retail investor, sb curiosity offers a greater return dropping the concept of parking funds on this ETF.
Thanks all for clarifying.
From return perspective for a retail investor, sb curiosity offers a greater return dropping the concept of parking funds on this ETF.
In case your revenue is taxable, progress MF solely will get taxed once we promote. That may make an enormous distinction for static capital by compounding through the years.Pledging on high of that makes it first rate for buying and selling. As all (tiny…) progress can be utilized as capital too.
However yeah, liquidcase is like in a single day fund ( so low charges) and with greater bills. Greatest use case is pledged capital that you could be must withdraw to repair damaging stability. In any other case go for decrease expense funds or various ones with greater charges ( and danger )
Financial institution SB ac curiosity can be on slab fee, Liquidcase can be on slab fee – internet impact identical.
Small distinction. Since liquidcase is a progress fund, tax implications are solely on the time of sale. That’s not the case for FD. There may be time worth of cash even for the tax portion.
Since liquidcase is a progress fund, tax implications are solely on the time of sale. That’s not the case for FD.
Didn’t perceive. The cash that i hold in my SB account (Not FD) which everybody retains for his or her common bills, I considered shifting it to this ETF as I assumed it will give higher returns than SB fee. Cash will finally be used up and therefore I’ve to promote these models and incurr capital acquire. I assumed this ETF was an alternate to SB account and I get greater return than SB rate of interest i.e on my float stability.
However in comparison, it doesn’t attraction as I get greater return on SB account – The selection of liquid case was not for long run funding.
I repeat is that this ETF an alternate to sustaining funds in SB account which provides return on float stability and return is greater than SB rate of interest…
@SpacemanSpiff
I repeat is that this ETF an alternate to sustaining funds in SB account which provides return on float stability and return is greater than SB rate of interest…
Financial savings financial institution sometimes give round 3% ? In a single day finds akin to liquid case may give extra.liquidcase present yield after expense will in all probability be round 5.5-6%. Each on slab.
In case your financial institution pays greater than 6%, then sure no level in utilizing liquidcase/in a single day funds in your utilization.Anyway the diff wont be a lot and might not be well worth the trouble for on a regular basis bills. I don’t use it for that.
1 Like
Pricey @nithin_kumrr
As quickly as potential – Please launch a passively managed aggressive hybrid index fund with a 75:25 fairness:debt asset allocation ASAP [ must be re-balanced monthly to maintain the asset allocation]
I believe SEBI has already given the go-ahead for this proper?Refer:https://www.valueresearchonline.com/tales/201566/sebi-to-allow-the-introduction-of-passive-hybrid-funds/
SEBI has permitted the launch of three passive hybrid classes. Then why is it nonetheless not accessible from the Zerodha AMC??
I don’t suppose beginning such a fund can be sophisticated…
This sort of hybrid index fund is STILL not accessible within the Indian mutual fund market!!
1 Like
Please reply @nithin_kumrr @Bhuvan
As quickly as potential – Please launch a passively managed aggressive hybrid index fund with a 75:25 fairness:debt asset allocation
I repeat is that this ETF an alternate to sustaining funds in SB account which provides return on float stability and return is greater than SB rate of interest…
Okay. I believe I wrongly interpreted your publish. I assumed you had been contemplating it as an alternative of FD.For SB stability I don’t suppose any financial institution offers greater than 6 % curiosity straight away no matter stability. I do know IDFC offers however I believe that’s provided that avg stability is greater than 5L. (I’m not positive).However in case you are contemplating frequent shopping for and promoting small quantity from this etf, I don’t suppose it’ll even beat sb fee. There are commerce expenses to be incured with the etf.To make significant distinction you may need to have at the least 10L on this etf with not so frequent trades.
1 Like
