Nifty Bees is the first Exchange Traded Fund (ETF) in India launched by Benchmark Funds. The NSE Code is NIFTYBEES. Recently I have been receiving many email queries from our regular visitors about whether one can trade, take delivery and so on. This update is to clarify their doubts and add some more details about it.
Nifty Bees is just the replica of the NSE Nifty Index which is currently at 4700. It is 1/10th of the value of the index, quoting at 470. It is as simple as that.
Now the question is, can anyone trade or take delivery of this, just like any other stock?
Definitely one can trade or take delivery just like any other stock. Since Nifty Bees is primarily an investment product, it is wise to take delivery rather than trading intraday.
So now the next question is - when to buy and how much to buy?
Instead of timing the market,like I will buy at 15k or 12 K, it is better to buy in a systematic manner. Systematic Investment Plan - as the name suggets, Invest a certain fixed amount every month and take delivery of the units/shares.
Features of Nifty Bees:
1.You can buy the market as a whole.
2.You can buy 1 unit also.
3.After you have bought , just like stocks it will be available in your DMAT Account.
4.You can sell them any day.
5.You need not worry about buying and selling stocks.
Some not-so-exciting features:
1.You wont get 20%-30% upmoves in a day, like in stocks. (Other than a Blackswan upfreeze ! )
2.Moderate returns.
Going by all these features , Nifty Bees is a good investment product and it is a simple way for small investors to participate in equity markets.
You can also read the previous article here - What is Nifty Bees ?
Very useful article.
Wonderful article, the retail investor can enter and exit and catch the moves of the higly volatile index.
it's a really nice post and article friend,thanks for sharing!!!!
Can any one Say the brokerage for ETF? Is this just like equity brokerage? Can it be traded intraday?
Yes, the brokerage for ETF is just like equity brokerage.
It can be traded intraday, though not advised.
Can we short it?
No you cannot short it, since this is a delivery product and not futures.
Of course, you can short it on intra-day basis and cover the same day.