What is NIFTY BEES? How to trade in NIFTY BEES?

If you are looking for a way to invest your money in S&P CNX Nifty Index but you don’t have enough capital to trade in S&P CNX Nifty Index or you don’t want to take a risk on your capital with the wild moves in S&P CNX Nifty Index and Bank Nifty then you should try to invest in NIFTY BeES which has low risk and low capital requirement and trading in it is easy as buying shares in your Demat account. so first of all what is is Nifty BeES?

What is Nifty BeES?

NIFTY BEES (benchmark exchange trading scheme) is the first exchange trading fund (ETF) launched in India by BENCHMARK, an asset management company on January 8, 2002, nifty bees is like a combination of a share and a mutual fund unit that can be traded on the capital segment of the National Stock Exchange NSE. NIFTY BEES units are traded and settled just like any other shares in the share market at prices available on the screen.

How NIFTY BEES value calculated?

Nifty BeES is the replica of the S&P CNX Nifty Index and the value of Nifty BeES is always 1/10 of the total value of the S&P CNX Nifty Index for example if the current value of nifty 50 is 15000 then the current value of Nifty BeES is 1500.

How Nifty BeES is different from Nifty 50?

  1. Nifty beES is the replica of nifty 50 but ten times lesser than the value of Nifty 50.
  2. The value of nifty 50 is driven by the performance of shares of the top 50 companies listed in the National Stock Exchange of India the but the value of Nifty beES is driven by the value of Nifty 50.
  3. You cannot directly trade in S&P CNX Nifty Index but you can directly buy or sell in Nifty BeES just as like buying shares of a particular company.
  4. Future of S&P CNX Nifty Index expire every last Friday of the month but Nifty beES is like a share which is not expired throughout the year.
  5. Volume in S&P CNX Nifty Index is very high as compared to the volume in Nifty BeES and the volume of Bank Nifty BeES is also lower than nifty bees.
  6. Brokerage is high when you trade in S&P CNX Nifty Index as compared to Nifty bees which are 0.80 % of the total asset traded.

Advantages

  1. Simple, trade-in Nifty BeES is as simple as trading in stocks, Nifty BeES can be bought or sold throughout the trading day just buy call to your broker.
  2. Economical, Nifty beES is a no-load scheme the annual expense ratio includes management fees maximum of 0.80 % of the total daily average net assets which is is one of the lowest for any mutual fund scheme in India the cost reduced for other 0.65% for assets over 5 billion.
  3. Convenient, Nifty BeES is listed in National Stock Exchange of India you can bye buy or sold nifty bees throughout the day just buy Bhai call to your broker you can also place limit orders in it buying and selling appear in the portfolio holding section of Demat account
  4. Transparent Nifty beES is the replica of nifty 50 so there are no reasons to doubt its transparency.
  5. low chances of human errors when you buy a mutual fund plan, a mutual fund manager invests your money in different sectors but in Nifty BeES, there is minimal chance of human error as there is no need financial manager in Nifty beES.
  6. Diversification of portfolio Nifty BeES is the replica of nifty 50 which is the indicator of NSE which is the overall performance of top 50 shares listed in National Stock Exchange so by buy trading in Nifty BeES you are trading in every different sector in share market.

Disadvantages

Low volatility in Nifty BeES volatility is low as compared to other indexes so if you are looking for a highly volatile asset then Nifty BeES is not for you.
Similar to Mutual Fund nifty bees is somehow similar to Mutual Fund so instead of buying Nifty BeES you can invest in a mutual fund.
Compress risk with one single decision.

How to trade in Nifty BeES.

Trading in Nifty BeES is as simple as trading in any other stock you just have to have a Demat account if you don’t have a Demat account then open your Demat account in a hassle-free paperless work.
Just type Nifty BeES in the search box.

Nifty BeES.

Add Nifty BeES to your watchlist.

Nifty BeES.


Now you are ready to trade in Nifty BeES just click on buy or sale and start trading in Nifty BeES.

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