Skip to main content

Nifty Bees - Update

niftybeesNifty 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 ?

Popular posts from this blog

NSE Trading Holidays 2024

 Trading holidays for the calendar year 2024. The National Stock Exchange of India (NSE) has notified trading holidays for the calendar year 2024 as below: Muhurat Trading:  Timings of Muhurat Trading shall be notified subsequently. 

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 !