Introduction to Nifty BeES
Nifty BeES is the first Exchange Traded Fund (ETF) in India. It is an combination of a share and a mutual fund unit. It allows you to?trade Real-time on NSE and gives you Real-time Indicative NAV. With Nifty BeES you can tracks the S&P CNX Nifty Index. Nifty BeES is Priced at 1/10th of the Nifty Index and the Investment management fee is 0.35% and the total expense ratio is 0.80% per annum, probably the lowest in India. It Structures as a Mutual Fund under the SEBI 1996 regulations.
What is S&P CNX Nifty Index
S&P CNX Nifty Index is India?s premier benchmark index introduced in November 1995. It was developed as a basis for introducing Index Based Derivatives. S&P CNX Nifty is calculated using the Free Float methodology. Only companies having a high degree of liquidity defined in terms of low Impact Cost are included as Constituents of the Index. Impact Cost of the S&P CNX Nifty is 0.06% for a portfolio size of Rs. 50 Lakhs and it represents about 53.61% of the Total Market Capitalization of NSE as on 31st Dec 2010.
What are benefits of Nifty BeES?
Simple - Can be bought/ sold on NSE like a share real-time.
Economical - No load scheme. Annual expense is one of the lowest for any mutual fund scheme in India.
Diversification - Its a cost efficient way to invest in a basket of securities.
Equitable Structure - Long term investors insulated from short term trading activity.
Transparent - Investors have access to information on the portfolio constituents represented on a daily basis.
Nifty BeES is the first Exchange Traded Fund (ETF) in India. It is an combination of a share and a mutual fund unit. It allows you to?trade Real-time on NSE and gives you Real-time Indicative NAV. With Nifty BeES you can tracks the S&P CNX Nifty Index. Nifty BeES is Priced at 1/10th of the Nifty Index and the Investment management fee is 0.35% and the total expense ratio is 0.80% per annum, probably the lowest in India. It Structures as a Mutual Fund under the SEBI 1996 regulations.
What is S&P CNX Nifty Index
S&P CNX Nifty Index is India?s premier benchmark index introduced in November 1995. It was developed as a basis for introducing Index Based Derivatives. S&P CNX Nifty is calculated using the Free Float methodology. Only companies having a high degree of liquidity defined in terms of low Impact Cost are included as Constituents of the Index. Impact Cost of the S&P CNX Nifty is 0.06% for a portfolio size of Rs. 50 Lakhs and it represents about 53.61% of the Total Market Capitalization of NSE as on 31st Dec 2010.
What are benefits of Nifty BeES?
Simple - Can be bought/ sold on NSE like a share real-time.
Economical - No load scheme. Annual expense is one of the lowest for any mutual fund scheme in India.
Diversification - Its a cost efficient way to invest in a basket of securities.
Equitable Structure - Long term investors insulated from short term trading activity.
Transparent - Investors have access to information on the portfolio constituents represented on a daily basis.
