Comment on ETF - Exchange Traded Funds

Nithin Kamath commented on 02 Jun 2015, 01:28 PM

Liquid bees has daily dividend on it. So any gain made is given back as dividend which is again compulsorily reinvested. This is the reason the value remains the same at 1000. The longer you hold, the return is in terms of number of units. So if you invested 100 units at Rs 1000. After a while you will have 101 units at Rs 1000, so your return is Rs 1000. Liquid funds are basically like short term debt funds, have earned anywhere between 6 to 9% in the last 3 to 4 years.

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