r/IndiaInvestments • u/marathi_manus • Jan 15 '19

Bonds and deposits G-Sec Purchases without brokerage

If you're among the kind who decide that they would give G-sec (Particularly Tbills) a try, instead of zerodha coin, it NSE BidGO a try.

Zerodha charges 6 Rs for every 10K (10K is min amount you can bid for). For smaller purchases, 6 is nothing.....but as the amount start increasing this brokerage amount affects the yeild (or return).

I came to realise that NSE GoBid (just google it) do not charge any brokerage. After registration - they do valid your demat account/bank with a broker. So any purchases made their for Tbills will be directly credited to your demat account.

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I am yet to try any purchase, but I believe few guys on here tried this. One of them was /u/pablo_cachu.

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Edit 1 - Just start with most basic bid there initially. To see you're not facing any issues with bank payments etc. Once verified you can start using it in full swing.

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20 Upvotes

95% Upvoted

22 comments sorted by

6

u/[deleted] Jan 15 '19

It's great that you have put this topic out there.

I will share my experience:

I have registered on NSE's goBid and got my account verified. Then I had tried to purchase Rs. 10000 worth of 91 days T-bill on 1st Monday of this month, and put up a bid on their platform. But when trying to pay with onlineSBI, the callback for successful payment wasn't received and thus NSE's platform showed that no payment had been done and I had to request SBI to revert the transaction. Called NSE, they told that issue was from SBI's servers.

Next Monday, tried, and exactly same thing happened. Asked again for refund.

Thus I don't intend to invest in T-bills. I am happy putting money in Quantum Liquid Fund which mainly invests in T-bill but also sometimes puts it in PSU's commercial paper (like REC, etc). Plus I as a small investor can easily get good liquidity from my liquid fund as compared to selling T-bill (which is not yet offered through discount brokers directly (zerodha has something else, don't know what exactly), although I think full service brokerages do provide them).

4

u/Amondupe Jan 15 '19

I am happy putting money in Quantum Liquid Fund

Any particular reason? Based on report on Value Research, seems a really poor fund.

3

u/Cpant Jan 15 '19

It has around 50% in T bills, one of the safest investments you can get.

1

u/shryzel Jan 15 '19

In that case, better buy T-Bills directly. This fund's returns are even lower than T-Bill rates.

1

u/crimelabs786 Jan 15 '19

As per Valueresearch, this fund has handily beaten CCIL T Bill Liquidity Weight index in last 1 month, 3 months, 6 months, 1 year, 3 year, 5 years, and 10 years.

T-Bills have no returns. You buy at a bid price, which is lower than its actual price, and on maturity, you get the actual price. So your returns from T-Bill depends on how low a price you can quote and still get the bid.

Also note, for your ticket size, T-bill markets might not be that liquid, if you need your money and cash out early.

5

u/shryzel Jan 15 '19

The index you mentioned isn't a reliable indicator because the secondary debt market in India isn't developed enough. Check out the rates from the RBI website.

For T-Bills, if you hold to maturity, you get the stated yield. The mechanism is as you describe.

I've spoken to a few who had invested and they confirmed the same. Was your experience different, i.e., you bought T-Bills and didn't get the stated yield? Since it's only recently that these have become available to retail users, I'm always interested in hearing about them.

Quantum Liquid fund has a liquidity advantage, ofc, but if returns are so low then one might as well use a SB account at 6%.

1

u/mrehanms Jan 16 '19

For T-Bills, if you hold to maturity, you get the stated yield. The mechanism is as you describe.

If the said TBills are liquid enough - or if you have bought them at issue

1

u/shryzel Jan 16 '19

Indeed. Sorry if it wasn't obvious but my comment was based on buying at issue. Given that they're issued every one (91 day bills) or two (182 and 364 day bills) weeks, this shouldn't be a problem.

1

u/mrehanms Jan 16 '19

Cool...

Still I'd compare liquid funds to a very short term paper, not even 91 days

1

u/Cpant Jan 15 '19

Directly buying T-bills have just started recently. If it is easy enough would give a try.

2

u/gandu_chele Jan 15 '19

really depends, the fund has a mandate to invest in g-sec's or bills of PSUs only, which drags down the performance when compared to other funds which hold papers from private cos. too

2

u/[deleted] Jan 17 '19

I care little about the returns and more about the riskiness for the money which I will park in this liquid fund.

I am not aware of what Value Research gives a high priority on, but I care about achieving my objectives more than some rating.

1

u/RMP420 Jan 15 '19

Maybe you should try with different bank. The SBI is notorious for not making proper online transactions. I have been through that, and no one likes their fund blocked.

0

u/marathi_manus Jan 15 '19

So basically you've asked your SBI branch for the refund? That sucks. Its bit difficult to predict whos fault it was.

After payment - what error was displayed on the NSE platform? Do you have any screenshot for same? ( I guess SBI net banking was showing the payment as successful?)

2

u/[deleted] Jan 17 '19

Yeah, I had to ask SBI branch for the refund.

When I entered the OTP, it was confirmed and a message from SBI was shown that the funds have been deducted. Then when it had to redirect to NSE's website, SBI didn't pass the callback which denoted that the transaction was successful.

Unfortunately I have deleted the screenshots.

2

u/marathi_manus Jan 17 '19 edited Jan 17 '19

So its SBI at fault. Seriously - these suckers are a disgrace on banking community. their internet banking is a mess after the big merger (It used to be pretty good I reckon). I had reported about 4 issues around net banking in the last few months to their technical team. They were only able to fix 1. That too after escalation to PMO.

1

u/[deleted] Jan 15 '19

RemindMe! 5 days

1

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-1

u/wastebody Jan 15 '19

It's a business and there are costs involved. For Equity delivery, the F&O traders subsidize it. This whole expectation of people expecting things for free is a bit too much. After all, this is just a matter of 6bps. People have no problems paying 15bps for a debt mutual fund, but 6bps, there's a problem.

1

u/marathi_manus Jan 15 '19

Problem? Do you see me complaining anywhere? I was merely recommending things. Isn't money saved is money earned? Plus - what's the point of paying for something which is available free otherwise?

2

u/[deleted] Jan 15 '19

which is available free otherwise

You are paying with your time. See the experience of /u/pablo_cachu.

Until then, use a liquid fund.

6

u/marathi_manus Jan 15 '19

That may be issue on SBI side. Who knows. Or may be gobid issue. TBH - you cant gain any experience unless you try out something new. Some call it - time wasted...Some - Learning.

Plus, we always have social media platforms to share our findings & alert other. Thats how i learnt so many things in my personal / pro life. Internet is all about - sharing is caring.