Saturday, October 20, 2012

What is Nifty Bees ?



NIFTY BEES is the first Exchange Traded Fund in India, which aims to offer investment profits that directly match to the total returns of Stocks as displayed by the S&P CNX Nifty Index. It provides you the most diversified exposure at lowest possible unit size. Roughly speaking, value of Nifty bees will be 1/10th value of the current Nifty price.
Nifty Bees can be purchased or sold like a share by using any NSE Stock broker at prices available on the screen. The fundamental portfolio of Nifty BeES very closely duplicated of the S&P CNX Nifty. That’s why, Nifty BeES tracks the movement of S&P CNX Nifty.  
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Why NFITYBEES suggested ?
  • NiftyBeeS is Less price which is listed and traded on the NSE, Nifty BeES can be bought or sold, although the trading day just by a call to your broker. This gives you the power to answer fast to changes in the market. You can place limit orders. Nifty BeES can be held in your DP account with other portfolio holdings.
  • It is Simple which overall performance of Nifty BeES is just the result of performance of shares in the S&P CNX Nifty Index and demand & supply in the market. There is no Fund manager bias.
  • Nifty BeES duplicates the S&P CNX Nifty, investors can know at any given point of time where and how much is invested in each stock.
  • While buying a single stock, one has to analyze the stock, management quality, future prospects and current valuation, which is not the case in ETF because Investing in just one Stock gives exposure to fifty shares of the S&P CNX Nifty. This allows investors to spread risk with one single decision.



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