Educating Dona : NIFTY BeeS
Educating Dona : NIFTY BeeS
Nifty BeeS is an exchange-traded fund that replicates the Nifty Index. It trades on the National Stock Exchange and hence can be bought or sold in dematerialized format only.
Diversification is the main benefit of investing in Nifty BeeS .
It is a perfect alternative for those want comparatively risk free investment option when compared to stocks & more returns when compared to passive forms of investing.
Since it is an ETF, it is a combination of a mutual fund and a share (equity securities). Each unit of Nifty BeeS is 1/10th of the value of the Nifty Index. The face value is INR 10.Since it is an ETF, it is a combination of a mutual fund and a share (equity securities). Each unit of Nifty BeeS is 1/10th of the value of the Nifty Index. The face value is INR 10.
Benefits
Simple and Economical
Expense Ratio is less when compared to Mutual Funds and other similar options
Neutral and Transparent
It is an automated system and simulates the performance of the index , hence the decision are machine made.
Convenience and Liquidity
Easy to buy and sell
Diversification
Investing in one unit of the mutual fund gives exposure to fifty shares of Nifty.
P.S : Nifty Gold Bees is a similar instrument which tracks the daily movement of Gold
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