As we are aware of the concept of ETF (Exchange Traded Fund), Nifty BeEs is also an ETF that tracks the S&P CNX Nifty Index. Like any other security, it can be bought & sold on the stock exchange (NSE).
BeEs is an abbreviation for ‘Benchmark Exchange Traded Scheme’. Nifty BeES was the first ETF in India, is being introduced by BENCHMARK, an Asset Management Company on January 8, 2002.
Each Nifty BeES unit is 1/10th of the S&P CNX Nifty Index value. Nifty BeES units are traded and settled in dematerialized form like any other share in the rolling settlement.
As it is an ETF, the buying and selling of the units happen at real-time NAV or market price. Investors can also do a systematic investment(SIP) in this ETF.
The expenses ratio for Nifty BeEs is 0.05% (As of 30-Nov-2021). Also, the Assets Under Management (AUM) is ₹ 5,113 Cr (As of 30-Nov-2021).
As it tracks the index with a low fee, Nifty BeEs is an economical option to get returns while mitigating volatility risk. Also, an investor can exit the security whenever the need is without any concerns of lock-in.
Hope this helps
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References:
- What are Nifty BeEs? How to invest in Nifty BeEs in India? | Scripbox
- https://www1.nseindia.com/products/content/equities/indices/prod_niftyBees.htm
- Nippon India ETF Nifty BeES [187.3612] | Nippon India Mutual Fund – Moneycontrol
- https://www.valueresearchonline.com/funds/1171/nippon-india-etf-nifty-bees/#fund-performance
- https://www1.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=NIFTYBEES#
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