ETF – Exchange Traded Funds

November 7, 2012
Queries

Traders,

This is November 7, 2012 and very close to Diwali. This year the auspicious occasion of Dhanteras is on November 11, 2012.

Dhanteras as explained on wikipedia: Dhanteras (Hindi: धनतेरस, Marathi : Dhantrayodashi) is the first day of the five-day Diwali Festival as celebrated in parts of North India. The festival, known as “Dhantrayodashi” or “Dhanvantari Triodasi”. The word Dhan means wealth and Teras means 13th day as per Hindu calender. It is celebrated on the thirteenth lunar day of Krishna paksha (dark fortnight) in the Hindu calendar month of Ashwin.

On Dhanteras, the “Owl” form of Goddess Lakshmi is worshiped to provide prosperity and well being. Dhanteras holds special significance for the business community due to the customary purchases of precious metals on this day.

Gold is the favourite precious metal for all of us and typically gold is bought on Dhanteras. Buying gold as jewellery is not really the ideal way of investing as they are illiquid, you have to factor in making charges, etc… The best way to buy into gold for an investment is through ETFs (Exchange Traded Funds) and NSE is conducting a special session this Sunday to trade only Gold ETFs between 11:00 AM to 3:30 PM. So if you want to buy Gold as investment do it through your trading and demat account with Zerodha. Find following an image that shows how to add GOLD ETFs on the market watch and remember that to buy GOLD ETFs as an investment you need to have a demat account mapped to your trading account, so you can trade with the product type as CNC. If you want to do intraday trading, use the product type as MIS, but you will have to square it off before the end of the day.

As a small Diwali Gift, all our clients will be able to trade Gold ETFs with Zero brokerage this Dhanteras (November 11, 2012).

 

If you are unable to see the content above :Download Handbook on Exchange Traded Funds (ETFs) here.

List of Securities available for trading in ETF:

Symbol Underlying Security Name
BANKBEES Bank Nifty Goldman Sachs Mutual Fund – Bank Nifty ETF
GOLDBEES Gold Goldman Sachs Mutual Fund – Gold ETF
GOLDSHARE Gold UTI Mutual Fund – Gold ETF
JUNIORBEES Junior Nifty Goldman Sachs Mutual Fund – Nifty Junior ETF
KOTAKGOLD Gold Kotak Mutual Fund – Gold ETF
KOTAKPSUBK CNX PSU Bank Index Kotak Mutual Fund – PSU Bank Index ETF
LIQUIDBEES Government Securities Goldman Sachs Mutual Fund – Liquidbees ETF
NIFTYBEES Nifty Goldman Sachs Mutual Fund – Nifty ETF
PSUBNKBEES CNX PSU Bank Index Goldman Sachs Mutual Fund – PSU Bank ETF
QGOLDHALF Gold Quantum Mutual Fund – Gold ETF
QNIFTY Nifty Quantum Mutual Fund – Nifty ETF
RELBANK Bank Nifty Reliance Mutual Fund – Bank Nifty ETF
RELGOLD Gold Reliance Mutual Fund – Gold ETF
SBIGETS Gold SBI Mutual Fund – Gold ETF
SHARIABEES Shariah Index Goldman Sachs Mutual Fund – Shariah Index ETF
KOTAKNIFTY Nifty Kotak Mutual Fund – Nifty ETF
HNGSNGBEES Hang seng Index Goldman Sachs Mutual Fund – Hang Seng ETF
RELIGAREGO Gold Religare Mutual Fund – Gold ETF
M50 Nifty Motilal Oswal Mutual Fund – Nifty ETF
HDFCMFGETF Gold HDFC Mutual Fund – HDFC Gold Exchange Traded Fund
IPGETF Gold ICICI Prudential Mutual Fund-ICICI Prudential Gold Exchange Traded Fund
INFRABEES CNX Infra Index Goldman Sachs Mutual Fund – Infra Goldman Sachs ETS
AXISGOLD Gold Axis Mutual Fund – Axis Gold ETF
M100 Midcap Motilal Oswal Mutual Fund – Midcap ETF
N100 Nasdaq100 Motilal Oswal Mutual Fund – Nasdaq ETF
BSLNIFTY Nifty Birla Sun Life Nifty ETF – Growth
IIFLNIFTY Nifty IIFL Mutual Fund – Nifty ETF
BSLGOLDETF Gold BIRLA SL GOLD ETF
RELGRNIFTY Nifty RELIGARE MF – NIFTY ETF
IDBIGOLD Gold IDBI Mutual Fund – IDBI Gold ETF
CRMFGETF Gold Canara Robeco Mutual Fund – Canara Robeco Gold Exchange Traded Fund
MGOLD Gold Motilal Oswal Mutual Fund – Motilal Oswal MOSt Shares Gold ETF
NIFETF Nifty ICICI Prudential Mutual Fund – ICICI Prudential Nifty ETF – GROWTH
RELCNX100 CNX100 R Shares CNX 100 Fund

Hopefully, this clarifies all the doubts on ETFs.

Similar to Gold ETFs, another product which is getting popular of late is E-Gold. To buy E-Gold, your broker has to be a member of the National Spot Exchange (currently Zerodha is not) and the advantage of E-Gold over Gold ETF is that if you intend to take physical delivery of gold, in E-Gold you can for a quantity as small as 8 gm, whereas for a Gold ETF it is 1 kg upwards. Another difference is that you can trade Gold ETF till 3:30 PM (NSE), whereas E-Gold can be traded till the close of commodity markets. GOLD ETFs can be given as collateral for trading on NSE F&O, but E-Gold can’t. If you are looking at the products for investment, it shouldn’t really matter if it is Gold ETF or E-Gold.

*As everyone knows, now that this product ran into trouble with the failure of NSEL, you can read more on NSEL fiasco.

Wishing you all a lot of gold, a very Happy Diwali and a year filled with happiness, success and prosperity.

Happy Trading,

Nithin Kamath

CEO @ Zerodha and partnering startups through Rainmatter to help grow and improve the capital market ecosystem in India. Love playing poker, basketball, and guitar. “You don't have to be a hero to accomplish great things---to compete. You can just be an ordinary chap, sufficiently motivated to reach challenging goals.” - Edmund Hillary

149 comments

  1. Abrar says:

    In the NSE circular that you have posted here it is given that arbitrage is possible through ETFs between cash and future market, please explain in detail with an example how this is possible

    • Hanan says:

      In ETFs we have something called Nifty Bees. This is just an ETF based on the Nifty index and it reflects the movements of the index. You could do an arbitrage by buying the ETF (Nifty Bees) and selling Nifty future. Please note that in most cases any kind of price difference is already factored in and arbitrage opportunities are few and far between – at least for the retail trader.

  2. Pratik_Phunguskar says:

    Can i buy bonds with same dmat account.
    What will be the charges,brokerage etc.

    • Hanan says:

      Yes, you can buy bonds with the same demat account. The charges at Zerodha are standardized for all exchanges and all segments at 0.01% or Rs. 20 per executed order, whichever is lower. Please note that taxes and other statutory charges are applicable.

  3. nandan says:

    I am investigating into opening an account with you. I would buy/sell tax free bonds in addition to equity.
    Does you platform allow to buy/sell tax free bonds. An example is

    • Nithin Kamath says:

      Yes you can trade on tax free bonds like the one you have mentioned.

      Usually the DP charges to move between 2 accounts is Rs 15 to Rs 20/scrip, the point 15 on the link you have provided means that you can do it for free if you are closing the other demat account.

    • nandan says:

      Thanks a lot. Which form do I need to fill to move my DEMAT account and its shares to you(by closing the other DEMAT account)?

    • Nithin Kamath says:

      When you open an account with us you get your DP ID from us. Once you have this DP ID you will need to fill it in the closure form that Stock holding would give you, within 24 hours the shares will be transferred to your demat account with us.

      Cheers,

    • nandan says:

      One last query, the current DEMAT account is a joint. Can I open it joint with you too? The online filling up did not seem to allow for a second owner? I plan to close the DEMAT and move all the stocks to you. If the names are identical, there will be no charges. http://www.sebi.gov.in/circulars/2005/cir222005.html point 4 .

      Is it possible to have a joint account with zerodha? If it is a joint account will the charges increase?

      Thanks,

    • Nithin Kamath says:

      Nandan,

      Yes the demat account can be a joint one, the online filling form takes only for first holder but the demat form you can manually enter the second holder details.

      Trading account can’t have joint names, but demat can.

      Charges won’t go up because it is joint account.

  4. nandan says:

    Do you have a list of securities that one can trade with you online? Or is it all that is available on the BSE NSE?

  5. Raja Roy says:

    I am new to these things. I want to
    1. buy and sell shares. buy low sell high. say I buy 10 shares of ONGC at 250 and after 3 month sell it at 300 making a profit of 50*10= 500. how much brokerage will be charged by you in total transaction?
    2. Buy mutual fund through SIP , say I will sip an amount of 1000 for buying icici discovery mutual fund. how much brokerage will be charged. If I sell mutual fund how much brokerage will be charged by yo?
    3. Can I buy bonds? Say I want to buy HUDCO tax free bonds worth 8000 then how much will be charged by you.
    4. Can I open and operate my account online from any computer or do I need a specific software for that?

    • 1. We charge 0.1% or Rs 20 whichever is lower. If you bought for Rs 2500 and sold for Rs 3000, on the buying side you would have paid Rs 2.5 (0.1% of 2500) and on selling side Rs 3 (0.1% of Rs 3000) as brokerage. Check out our brokerage calculator.

      2. Presently at Zerodha, you cannot trade mutual funds.

      3. Again for bonds it is 0.1% or Rs 20 whichever is lower. For Rs 8000, it will be Rs 8.

      4. Yes, you can open and operate your account online. We give you a software version, a web/html5 browser based version, and a mobile version. You can trade using whichever.

  6. RV1000 says:

    Hi, I always read on one or the other article that best way of investing in gold is through Gold ETF. I also see in the order book of Gold ETF, people will be transacting in 1-2 units only. Now, let us say in a span of one 24 months I accumulated 24 units of SBI Gold ETF and want to en cash it all togather on a 25th month. Will I loose on its fair price because I placed a big quantity? If I place the order in single units, I will loose on my brokerage!! Please suggest.
    Thanks in advance.

    • Yeah, there could be an impact cost if you are trying to sell a lot of contracts at one time. So the best way to avoid the impact cost would be to break your order into pieces, but yeah that might get you incur more brokerage.

  7. N says:

    (1) What are the transaction costs for purchasing and selling Liquid Bees ETF? I am trying to ascertain whether it is feasible to park my idle trading money in Liquid Bees rather than in the bank savings account.

    (2) Is there any advantage for me to do so, other than that the dividend income may be tax free?

    (3) Are you planning any specific waiver of charges (I read on another thread that Nithin had promised to think about it specially since many other brokerages are waiving the charges, plus also the fact that it would be increased security even for Zerodha).

    • 1. Transaction charges are as charged by exchange, 0.00325%
      2. Dividend income is not tax free, the advantage is that you earn an interest.
      3. We charge quite less already don’t we 🙂

      • N says:

        (1) Is there any STT or other charges?
        (3) 🙂
        Of course, no doubt. Zerodha is the lowest cost and the best. I am not trying to “push” you into reducing the cost further, just trying to evaluate what your decision was.

  8. N says:

    Is it possible for Zerodha to provide margin against Liquid Bees by pledging these, but not removing them from the Demat account?

    I would like to keep my idle funds in Liquid Bees and sell them AFTER trades are executed. Currently, if Liquid Bees are pledged, I understand that it takes one day to unpledge them, in which case, I will have to pay one day’s interest on the margin. Instead, if you allow margin against Liquid Bees without pledging these, the Liquid Bees can be sold on the same day after the trade is executed.

    Zerodha can keep controls to ensure that there is no risk for Zerodha:
    (1) Keep a control that if Liquid Bees are sold, there is no additional margin provided (since margin would already be provided prior to selling)
    (2) Cancel the open trades at 3:20 pm, where margin is provided against Liquid Bees
    (3) Sell Liquid Bees at 3:20 pm to cover trades, if there is a deficit at that time

    This way, at the end of the day, there is no margin provided by Zerodha. This is similar to you releasing 60% margin for Futures every morning and again blocking the margin at 3:20 pm or so. Only, here, it will be 100% margin since there is no volatility risk.

    Currently, my funds remain idle in a bank account. With this, the funds can earn money, as well as no hassle of transferring funds (no pay-in, pay-out everyday).

    I think this will action give a competitive edge to Zerodha as well. Plus reduce your risk, as you would always have additional margin to finance any losses on open positions (since client funds would be parked in Liquid Bees instead of the bank).

    • N, this is a regulatory issue. If we provide you margin based on stocks in your demat, it becomes a funding issue which we/any broker are not allowed to do. When you pledge the BEES, we pledge it at NSE and they release the margins for your trading account. This will be the only way to do this. What many other brokerages do is, instead of pledging with NSE they keep it in their pool account and give you margin, which we don’t want to do as a business.

  9. Satheeskumar says:

    Hallo.
    This is regarding Niftybees ETF. In the NSE site it is mentioned that “annual expense ratio including management fees is a maximum of 0.80%”. What is it ? Please explain.

  10. Satheeskumar says:

    Sir,
    1. Please reply about liquidity of Goldbees and Niftybees in the present market scenario.
    2. On 21-Nov-14, Total Traded Quantity of GOLDBEES was only 9,494 Nos. Do you expect it would increase in future.

  11. Satheeskumar says:

    Sir
    I want to invest a handsome amount in Mutual Funds. Hope I can buy/sell mutual funds through Zerodha. How can I get SYMBOLS of Mutual Funds in NSE.

  12. Sudarsan says:

    Sir,
    I have demat account in Zerodha. I am planning to buy ETFs. If I buy 100 units of BSLNIFTY, can u pls clarify below doubts.
    1. what would be the extra charges for buy/sell order.
    2. In case if i sell these 100 units within a year, what extra amount would be charged on this.
    3. Is buy/sell is similar to buying a stock in cash?
    4. Any doc to know the procedure to place buy/sell order for ETF.

    Thanks,
    Sudarsan.

  13. Julius JR says:

    Sir,
    I heard Idle fund in trading a/c may automatically deposited to Bank accounts. One can use BUY liquid bees to avoid this this transaction. My question is we should BUY & Hold for whole capital(idle fund) or Just we should have minimum DMAT transaction of Liquid Bees.

  14. […] The cost of trading ETFs will drop drastically especially since you trade at Zerodha. To know more about ETFs click here. […]

  15. […] The cost of trading ETFs will drop drastically especially since you trade at Zerodha. To know more about ETFs click here. […]

  16. Nitesh sharma says:

    Hi Nithin
    The mentioned Link doesn’t seems to be working can you post the new link also if i buy 1 Nifty ETF how much will be the amount blocked .

    • Nitesh, can you see the iframe in the above post. You can move around to different page numbers.

      Btw trading ETF’s are like trading stocks and not life F&O. So like the way you buy stocks, you can buy ETF’s and take delivery. Most popular Nifty ETF is NiftyBees. If you add NiftyBees on your marketwatch, you will see that it is trading around 861. This price will mirror whatever happens to Nifty, if Nifty goes up 1% this should also ideally go up 1%. To buy 1 NiftyBees, you need only Rs 861 in your account.

  17. Vinod Kumar says:

    I use Sharekhan (Trade Tiger) and Icicidirect (Trade Racer) since 2008. Sharekhan’s TradeTiger is better trading platform than Trade Racer of Icicidirect and Angel Pro. But now I want to start an account for my wife with less brokerage and fee structure. Tell me why should I prefer Zerodha. Furthermore, we would like to know whether you have any office in and around Ernakulam.

    Thanks
    Vinod

    • We have an office in Cochin. Yeah apart from low brokerage and great support :), Here is a list of all the tools and initiatives. And we have just had the beta release of our new trading platform which should be better than tradetiger and racer. Check this.

  18. Sathees Kumar says:

    What would be the margin required for the trade. Eg. Short Nifty Put 8500, and Long Put 8600 of same month.

  19. Sathees Kumar says:

    Short Nifty Put 8500, @ Rs.120/- 100 Nos.,
    and Long Put 8600 @80/- 100 Nos. of same month

  20. flyingshark says:

    1. Nithin, we can buy just 1 unit or there is a lot system like in futures?
    2. Also, a demat is compulsory or trading account is enough to buy/sell ETF?
    3. Just trying to confirm, is it legal for Indian resident to buy/sell SHARIABEES & HNGSNGBEES?
    4. Does Junior Nifty index still exist?
    5. Can ETFs be short sold?

  21. Arnold says:

    Incase I buy NiftyBees and say AxisBank declares a dividend, do I receive this dividend? Is NiftyBees meant only for price appreciation or do we also get dividend benefit which is declared by scrips in nifty50 basket?

  22. Karuna says:

    Are market orders allowed to buy and sell NiftyBeES?

  23. Arnold says:

    Guess u missed this question posted earlier.. reposting it-

    Incase I buy NiftyBees and say AxisBank declares a dividend, do I receive this dividend? Is NiftyBees meant only for price appreciation or do we also get dividend benefit which is declared by scrips in nifty50 basket?

  24. Sathees Kumar says:

    Sir, Presently I am doing options trading in Geojit. I have opened trading account in Zerodha also, but not started using zerodha daily, and would like to migrate to your one. I have found lot of utilities in your NEST, and in my opinion many are not worth for a general user. Since, you have a full team for development and updation of software, i hope you could easily develop a module for calculating ‘As of time PROFIT’. Eg:- I bought CALLS and sold PUTS on say 2 March. What is the PROFIT at a particular time. Now, everybody has to depend on either Calculator, Excel sheet or Rreliance money portfolio tacker with this provision. Could be please add a module for this purpose. This would be helpful to all of us.

  25. Nachiket Joshi says:

    I do SIP in ETFs. Do I need to pledge them every month (either for the additional amount or full) if I want a margin against my holdings? Is there any way I can give standing instructions to you to pledge the whole ETF holdings for collateral if recurring pledging is required?

  26. Sathees Kumar says:

    Sir, Regarding Goldman Sachs Nifty Exchange Traded Scheme, it always follows NIFTY rates. Suppose, something goes wrong with the company Goldman Sachs itself, will its ETF rate have a deep cut compared to NIFTY. Please reply.

    • Sathees, nothing to worry about. Most of the business in the US happens on ETF’s (ETF’s have overtaken mutual funds). Even if the company shuts down, the ETF shouldn’t be affected.

      • Sathees Kumar says:

        As you said even if the company shuts down, the ETF shouldn’t be affected. Is it true? If the Managing Company is affected, naturally it should affect its ETF and other funds also. Is it ?. Please reply.

        • Sathees, the exchanges before they let anyone start an ETF make sure that there is a chinese wall between the normal business and the ETF in itself. So you don’t have to be worried.

  27. Vaibhav Gandhi says:

    Hi there,
    I am an intraday trader in nifty options. I used to keep margin with zerodha. What is the procedure to convert that margin to liquidbees with zerodha itself and also use it the same liquidbees as margin. what is the costing in total.
    Regards
    Vaibhav Gandhi
    9825500195
    Note: I do appreciate your efforts in providing the best deal for traders and grooming them up.

  28. Sukesh says:

    Hello,

    There are many businesses which are creating these ETFs, like Goldman Sachs etc.

    Can you please throw some light on how can these companies profit from creating these ETFs on exchanges if they are just traded on stock exchanges without the influence of creator companies once they are listed.
    In short what motivates these companies to create ETFs?

    Thanks
    Sukesh

    • Sukesh, even if these are traded on exchanges the Fund house charges an expense ratio. The expense ratio is much lesser than the traditional mutual funds. So for Nifty bees managed by GS, they charge upto 0.8% annualized as an expense ratio. So if the fund size is say 5000 crore, they can make upto Rs 40 crores a year for managing this ETF.

      • Sukesh says:

        Hi Nithin,

        Thanks for clarifying. Can you also please elaborate on how and when will the expense ratio be charged? will it be debited from the trading account?

        Also will these fund managing companies have any other benefit other than expense ratio? Like in arbitrage or any other kind of benefits?

        Thanks
        Sukesh

        • The expense ratio is directly charged on the fund on a daily basis. So the NAV that you see is after all expenses.
          The only way the fund can earn revenue is via the expense ratio.

          • Sukesh says:

            Thanks Nithin, in that case how does Liquid Bees work? As the price of liquid bees are always the same with a difference of 1 paise for 1000 rs at most.

            Also can you please mention some of the uses of liquid bees? why are they required?

            Once again, Thanks for all the knowledge you are sharing.

            • 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.

  29. Satish says:

    I would like to invest LIQUIDBEES for long term through ZERODHA. What is the margin I’ll get from these LIQUIDBEES holdings, so that I can use it for Options trading?

  30. Keshav says:

    Your support team unable to provide the scrip codes in BONDS which can be bought on exchange.In Market watch page all NCDs are not getting displayed.

  31. Sathees Kumar K says:

    Sir,
    This is regarding NIFTYBEES. Please clarify my doubt. Suppose I buy some units, what is happening. Whether a) somebody is selling their units (just like shares) OR b) Fund House is issuing new units. What is actually happening.

  32. Sathees Kumar K says:

    Are they (fund house) not issuing units like what Mutual Funds do.

    • They are issuing units like MF, the only difference is that these units are tradeable on the exchange.

      • Sathees Kumar K says:

        Sir,
        Regarding Niftybees (benchmark is Nifty index), my doubt is : Suppose Nifty index is going up, at the same Goldman Sach company has some problem, will value of Niftybees go down, though it follows Nifty index.

        • Venu says:

          I’m not sure what you mean when you say ‘problem’. You’ll have to know that Goldman Sachs is the Asset management company that manages Niftybees and the return/yield will closely correspond to the total returns of the securities as represented by the Nifty. Every AMC is required to stick by it’s Investment objective.

  33. Sathees Kumar K says:

    I mean suppose Nifty index is going up, at the same Goldman Sach becomes bankrupt (a worst case), will value of Niftybees go down, though its benchmark is Nifty index.

    • Venu says:

      The AMC defines an objective and invests accordingly. Every unit of the ETF has to be backed by a “creation unit”. One creation unit is the denomination of underlying assets that can be redeemed for a certain number of ETF shares. So in the worst case scenario the underlying asset can be sold and the funds be recovered. You can post this query on http://tradingqna.com/ to get more responses.

  34. Naresh says:

    Dear Nithin
    I have few doubts based on your remarks below :-
    1. Is it possible to pledge only liquid bees or any ETF will do like Niifty ETF or Gold ETf etc ?
    2. Are there any transaction costs or interest costs when your ETF is pledged for option writing ? Any details
    3. What is the time interval involved between pledging and unpledging ? Suppose you wish to write a call in the next five minutes, will it be possible to do the same without seeking support from anyone and doing it on your own !
    Please advice and thanks in advance.

    Nithin Kamath says:
    June 28, 2015 at 11:43 am
    90% of liquid bees pledged can be used as margin. Remember though that only option writing/shorting is allowed using collateral margin.


    Reply

  35. Vijay says:

    Hi Team,

    I have applied CPSE ETF and they are reflecting in the demat account. But they are not visible in my holding yet. Can you please let me know how to sell ETF in zerodha?

    Regards

  36. Umabathy says:

    Hi!

    I couldn’t see the p&l of cpse etf in kite holdings tab.
    Its shows N/A.

  37. Sasi reka Kanagaraj says:

    Hi, Recently I had opened an account with Zerodha. I would like to invest in e gold just like stocks. Can you suggest me, how to buy e gold? Thanks in advance.

  38. UMESH says:

    No query open after reading the discussion threads re ETFs…Nithin, really appreciate your efforts in responding to each and every query…Keep spreading the light and Best wishes….

  39. PUNEETH G says:

    Hello Sir,

    I have some queries related to ETF’s.
    1.Can I use SIP (means manually buying it daily whenever the price is low) or average for ETF’s like NIFTYIWIN, BSLNIFTY.?
    2.What is the brokerage and transaction charges If suppose I bought NIFTYIWIN for this month worth of Rs.5000 @90 and if I sold @95 in the next month? Is there any hidden charges??

    Thanks

  40. Srini says:

    When (aka What Date) are the dividends for LiquidBEES deposited into the account? How often does this happen (once a month or once a week?)

  41. Praveen Kishor says:

    Hi, I have held certain qty of liquidbees in the month of apr 17 some were pledged and some were in the demat account. Today is 12th May but I am not seeing any dividend in my account. Further, How I can check my demat account holding. Thanx.

    • Akshay.A says:

      Hi Praveen,
      If you’ve pledged Liquidbees units with Zerodha, you will receive the credit of such dividends in the form of additional units to your demat account.
      You can register to Easi with CDSL to check your holdings in your demat account. Check the procedure here

  42. Jignesh says:

    Is there any date decided each month on which bonus units of liquidbees credited to account? Who decides that date?
    If units are pledged with Zerodha, will I get additional units?

  43. amit says:

    how to trade or buy/sell Etf,bonds on zerodha platform send me link

  44. Shammi Shailaj says:

    My order that I placed for KOTAKNIFTY and RELCNX100 got rejected with the error:
    “security is not allowed to trade in this market”.

    I had placed an AMO in the morning between 0200 – 0400. I tried placing it again multiple times only to get the same error until I got:
    “admin stopped amo”
    and I stopped trying

  45. pravin says:

    Can i have link to subscribe BHARAT 22 ETF?

  46. Gajendran says:

    hope BHARAT22 is listed. what is the symbol in Zerodha and how to buy it now via zerodha kite.

  47. Sharanu says:

    Dear Nithin,
    I am new to the world of ETFs and I am exploring the same. I logged in to Zerodha PI to find that individual scrips and ETFs (GOLD and indexes) are listed in the same list. It is very difficult to know the available ETFs on PI to trade? Is it possible to segregate scrips and ETFs?
    Also, I will be glad if you can confirm whether the ETF shown in the following NSE links are the only ETFs available to trade in India?
    https://www.nseindia.com/products/content/equities/etfs/equity.htm
    https://www.nseindia.com/products/content/equities/etfs/gold.htm

    Thanks and Regards,
    Sharanu

    • Matti says:

      ETFs trade in the same category as stocks on the exchange, hence shown on the same list. No way to segregate, I’m afraid. And yes, these are the tradeable ETFs.

  48. mahesh says:

    what is cost of buying etf?
    I want to buy it as a investment for long term

  49. deep says:

    I need a clarification on this topic,

    I was planing to pledge stock for trading options. but it seems we need to have 50% balance in our account.

    So, Pledging ETF we get 90% haircut and its almost like cash.

    Can we buy nifty options pledging ETF without cash balance in the account? please clarify.

  50. Saurabh says:

    Hi Nithin, I bought 100 LIQUIDBEES on 23 Jan 2017 and sold 4 days later on 27 Jan 2018. But I did not get any extra units as dividend. I have checked in my CDSL demat also. It is not present in that too. I know units will be in fractions ( somewhere worth Rs 65). But I suppose I should still get it. isnt it?
    Can you please clarify.

    Regards,
    Saurabh

  51. Amit says:

    I purchased Bharat 22 ETF FFO in Jun 2018. I was expecting to get units in Demat account like other ETF. but to my surprise, I see there is Folio number associated with it. I was not expecting this.
    Now I want to get rid of this folio number, please let me know how can unlink folio number.

    I already have some units in my Demat account which I purchased from exchange, which are not associated with any folio.

    • Matti says:

      When the ETF is held in demat mode, the folio number doesn’t really matter. This was the first time offline purchases were allowed for the Bharat 22 ETF, and hence the folio number. You can ignore this.

  52. Anil says:

    I am a zerodha user. what is margin required (leverage available) to say buy 1 share of an etf on zerodha (say relcnx100 or M100 etfs).

    I am looking to see how I can get leveraged exposure to nifty midcap or small cap indices through these funds. Please share if there is any other way to achieve that leveraged exposure.

    • Faisal says:

      We offer leverage for the NIFTY BEES, KOTAKNIFTY and NIFTYIWIN currently. You can check the Equity margin calculator.
      The reason we don’t offer leverage for most ETFs is the impact cost is quite high currently. As liquidity increases, we’ll start offer leverage for more ETFs

  53. ashrit minz says:

    please tell me what are the brokerage for buying ETF NiftyBEES, and how can i buy Bonds in Zerodha

  54. Vivek Sharma says:

    Hi, I am Zerodha user, want to invest each month in Gold ETF and that also for long term of 15 years and more . Not able to place the order as I am confused with options to be selected.like:
    CNC or MIS ?
    MKT,LMT,SL Or SLM ?
    Qty and disclosure qty …Both to be filled or which one is mandatory to be filled ?
    REGULAR,BO,CO Or AMO ?
    Validity day or IOC ?
    I placed and order but it got rejected with error “Adapter is not ready”. What does this mean ?

    What are the charges if I buy or sell Gold etc from zerodha ?

    • Matti says:

      Hey Vivek, the order types and various other fields are explained in the Kite user manual here. As for “Adapter not ready” , this error would have be seen if you were trying to place an order in off-market hours.

  55. adhik says:

    hi nithin
    is a margin getting from pledging all ETF(approved) be considered as equivalent cash holding.
    eg. if i have 5L invested in kotaknifty, N100 n bankbees, i will get 4L as margine. should i hold 50% cash

  56. Ranganatha says:

    I want to invest 1 lac rupees on four ETFs scheme,( for pledge the same) including 2 liquid ETF, please sugest which are the best of four .

    What is expected return on Liquid fund.

  57. Shinde pramod says:

    Sir, how to start SIP In ETF funds via your app. Explain steps

  58. Suneel Kotte says:

    What is the current fee for ETF? is there a charge for both buyng and selling?

  59. Ekta says:

    Hi Nithin,

    how long we can hold ETF.. if i want to invest for about 20 years or more.. is it possible with all the available ETFs ?

  60. Mohan says:

    Hi,
    When I am trying to buy ETF, Stop loss option is being shown in Kite. Please reply how to use it.

  61. Rohit Purakayastha says:

    Hi,

    I am new on Zerodha. My question is if I purchase/sale NIFTYBeES through this platform then what charges will be applied. I mean any and every kind of charge related to NIFTYBeES.
    Waiting for your answer or any link where I can have my answers.

    Thank you for your time.

    • Matti says:

      All charges are available here.

      • Rohit Purakayastha says:

        Hi,

        Thank you for your reply. I actually visited the page you mentioned before posting my question but I am not sure which of the charges mentioned on the page are applicable for NiftyBeES purchase. I am specifically interested in purchasing NiftyBeES. On the other hand, you can also tell me that if I want to invest exactly 1lakh then how much amount (total) will be spent on any kind of charges and rest will be used for NiftyBeES unite purchasing.

        Thank you

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