Skip to main content

What is NIFTY BEES - ETF?

What is Nifty Bees?

Nifty BeES, the first ETF in India, was introduced by Benchmark Asset Management Company in 2002 and currently managed by Nippon India Mutual Fund.
 
NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. 
 
It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/100 th value of the prevailing Nifty price.
 
Its units are traded in NSE and BSE. 
 
Nifty 50 TRI (Total Return Index) is the benchmark index which is the Total Return variant of Nifty 50.
 
NIFTY BEES

 

Why ETFs?
 
ETFs are types of Mutual Funds that aim to track the performance of a specific index such as NIFTY 50, NIFTY Next 50, NIFTY Bank etc. 

ETFs offer several advantages to investors:

  • Expense Ratio is lower.
  • Tracking Error is lower.
  • Can easily be bought / sold like any other stock on the exchange.
  • Minimum investment is one unit, which is as low as Rs.100.
  • Enjoy flexibility of a stock and diversification of index fund.

On one hand, investors can buy an ETF to get underlying Index returns at low cost (low expense ratio) and on the other hand they can trade in an ETF like a stock at live NAV, to benefit from intra-day volatility, if desired. 

Many AMCs have launched ETFs replicating various indices, among which Nifty 50 Index has more ETFs available. 

Among Nifty 50 ETFs, Nifty Bees has high liquidity and over 1 million units traded daily in NSE.The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability.  

Performance:

NIFTY 50

With large cap funds finding it increasingly difficult to outperform benchmark indices like NIFTY 50, ETF provides a low cost investment avenue to take exposure of various segments of the markets including large caps. 

Through investment in ETFs, investors may create wealth along with comfort of
portfolio transparency and tradability like stock. 

Complete list of  ETFs

Labels:

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !
Read more

Mutual Funds - How to modify KYC or do rekyc?

Last year SEBI issued a circular effective April 1, 2024 regarding KYC norms for the securities market. This has created a lot of confusion among investors and intermediaries, whether who has to do rekyc and who need not? First check your KYC status from CVL KRA . If the 2nd column says KYC VALIDATED, then you are good to go - no action required. You can invest and redeem all the funds. If it says registered, you can invest in existing Fund houses. You have do rekyc to invest in new fund houses/ schemes. If it is on hold, you have to do rekyc.  You can do rekyc completely online from the AMC's websites, links of which are given below: Bandhan Mutual Fund - Bandhan Canara Robeco Mutual Fund - Canararobeco DSP AMC - Dsp Franklin Templeton Asset Management Franklintempletonindia HDFC Mutual Fund Hdfc ICICI Prudential Mutual Fund Icicipruamc Kotak Mahindra Mutual Fund  Kotak SBI Mutual Fund  Sbi Investors having KYC status of  'Registered' or 'On Hold' can complete thei...
Read more