I have some strategies where you can earn some money every month which is by trading in the Equity ETFs. Now along with that we save some money in our savings account so that whenever there is emergency we can use that money.
Now instead of keeping the money in the savings account which generates 2 to 3% returns, we can leverage Liquid ETFs where we can get around 5 to 7% returns. And the best part is that we will get the incomr every single day. In the bank account you will get the interest after every quarter, but using the Liquid ETFs yoh cab get it daily.
We should not treat the Liquid ETFs like a equity ETFs because they will not grate a huge returns. They are a way to park your money which you need in the short term. Mostly if you are waiting to deploy your capital in Stock market, rather than keeping in the demat account you can use the Liquid ETFs to park it and when needed, take it out. Or if you want to park your emergency fund, that is also possible.
Now someone who wants to get passive income daily, then for them also it's great to keep it inliquid ETFs so that you can get the money daily. There are 2 types of Liquid ETFs, one pays daily like a dividend and one I growth whose NAV increases everyday. You can find the difference between the two in the video as well as which one to choose between the two.
I know the Liquid ETFs are not as liquid as FD or Savings account because you can only sell within market hours, but if you have a credit card, you can keep that money and use it to pay the credit card. So the use case is quite good, if you are using is properly.
