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Thread on Nifty BeES
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1๏ธโฃNifty BeES is an ETF (Exchange Traded Fund) by Nippon India, which tracks the Nifty Index.
2๏ธโฃTo explain in simpler terms, Nippon India takes your money and uses it to buy the equivalent number of all 50 stocks that the component of Nifty Index.
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3๏ธโฃ Each single share of Nifty BeES is priced approximately 1/100th of the Nifty Index.
4๏ธโฃIf Nifty is at 17000, the price of Nifty BeES would be (about) Rs.170 to 180
So if you buy 1 stock of Nifty BeES, the ETF would have invested in all of the 50 shares in Nifty
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5๏ธโฃBut you can say one canโt buy all of the stocks with just Rs.180. Right, but when lakhs of people buy it, the fund can buy enough stocks and your returns will be weighted according to your investment.
6๏ธโฃ Will you return be exactly like Nifty ?
ANS: NO !
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7๏ธโฃAs Nifty bees is traded like stock
All the charges are applied . Nippon Nifty etf has a expense ratio of 0.05%
9๏ธโฃ If you are looking for safe and benchamark returns Nifty etfs are best suited.
1๏ธโฃ0๏ธโฃ Etf is better in terms of expense ratio
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