Nippon India ETF Junior BeES is a Nippon India Mutual Fund House Open-ended Large Cap Equity plan. 2. On February 21, 2003, the fund was established.
Is there a dividend for Junior BeES?
In the event that a surplus is available, the Trustee may distribute dividends to unit holders. The regularity with which these dividends are distributed is entirely up to the Trustee’s discretion. This dividend will be paid to investors whose names appear on the unit holder register on the scheme’s record data. The net tax will be withheld from the dividend, which will be paid to unit holders within 30 days of the declaration of the dividend. Investors receive no assurance or guarantee that a dividend will be paid on a regular basis. The NSE and SEBI laws shall always be followed while paying dividends to unit holders.
Is it wise to put money into Bank BeES?
As you can see, throughout a one to five-year period, Bank BeEs has perfectly followed Nifty Bank TRI. Since its debut, however, it has underperformed the index.
The solution is contingent on the makeup of Bank BeEs. Bank BeEs are strongly exposed to private banks, as we observed earlier. While this improves performance, it also increases the danger of Bank BeEs.
Bank BeEs’ performance is only as excellent as its individual equities. It has eleven bank stocks in its portfolio. Out of these, four and five star rated equities account for 84.14 percent of the total exposure. A total of 14.38 percent of the portfolio is allocated to stocks with a star rating of 0.5 or one. As a result, if you invest in Bank BeEs, you’ll get a mixed bag.
As a result, investors should limit their exposure to Bank BeEs to 10% to 15% of their whole portfolio. The rest should be put into stocks that are fundamentally sound. The finest long-term stocks to buy in India are listed below. To invest in Bank BeEs and stocks, you must have a Demat account. So, establish a FREE Demat account with Samco Securities today and get the best Demat account in India.
Is the Nippon India ETF Nifty BeES a smart investment?
Nippon India ETF is a mutual fund that invests in India. Nifty BeES performs well on all three of the aforementioned criteria, making it one of the best Nifty ETFs. The ETF was founded in December 2001 and currently manages Rs 2,850 crores in assets (AUM). This ETF’s cost ratio is below 0.05 percent (as on 31st March 2020). The benchmark index of this ETF is the Nifty 50 TRI, as the name suggests. This ETF’s fund manager is Vishal Jain. The fund manager’s goal is not to outperform the Nifty, but to keep track of it.
How many stocks are in the Nifty Junior index?
The NIFTY Next 50 is a stock market index for businesses listed on India’s National Stock Exchange. After the NIFTY 50, it is the next rung of liquid securities. It is made up of 50 firms that account for roughly 10% of the total traded value of all equities on the National Stock Exchange of India. India Index Services and Products Ltd owns and operates the NIFTY Next 50. The symbol NSMIDCP is used to refer to it.
The NIFTY 100 is made up of the NIFTY Next 50 and the NIFTY 50, which reflect the 100 most liquid stocks traded on India’s National Stock Exchange.
Simple and Economical
Buying and selling NiftyBeES is as simple as trading stock securities. Any NSE terminal can be used to purchase and sell at current market prices. Nifty BeES’ underlying portfolio closely resembles the S&P CNX Nifty. The NiftyBeES program is a no-load program. To put it another way, all expenses, including management fees, do not exceed 0.80% of Daily Average Net Assets. The fee ratio is one of the lowest of any mutual fund scheme. Furthermore, for assets worth more than INR 500 crore, the expenses are as low as 0.65%.
Convenience and Liquidity
The NiftyBeES is a stock that is traded on the stock exchange (NSE). As a result, it can be purchased at any time during the day’s trading hours. Investors might act rapidly to seize an opportunity and even place limit orders. Nifty BeES assets can be held in a DP account alongside other portfolio holdings. The very nature of the Nifty BeES promotes liquidity. Buying and selling by investors, arbitrage by authorized participants with the actual shares, and arbitrage using index futures are only a few examples. As a result of the large trade volume, the investor has plenty of liquidity.
Neutral and Transparent
This ETF is free of fund management bias. In other words, the performance of these funds is determined by the S&P CNX Nifty Index as well as market demand and supply. And not on the study and analysis of the fund management. Because the Nifty BeES is a replication of the S&P CNX Nifty, unit holders may always see where and how much money is put in a particular stock.
Diversification and Equitable Structure
One unit of the mutual fund provides exposure to fifty S&P CNX Nifty equities. As a result, it provides a strong risk and diversification spread. Nifty BeES features a unique “in-kind” purchasing and selling process that involves swapping a pre-defined portfolio. Unlike other open ended mutual funds, investors in this long-term fund are not charged for short-term trading. To put it another way, it protects long-term investors from short-term trading.
What exactly is the Nippon Mutual Fund?
Nippon India Mutual Funds (previously Reliance Mutual Fund) is one of India’s most well-known asset management firms. Managed accounts, mutual funds, pension funds, alternative investments, and offshore funds are among the assets it administers. Nippon Life India Asset Management Limited is the asset manager for the Nippon India Mutual Fund (NIMF) (NAM India). Reliance Capital Limited and Nippon Life Insurance Company are the promoters of NAM India, owning 75.93 percent of the company’s total issued and paid-up equity share capital.
Reliance Capital Limited is one of India’s most well-known RBI-registered non-banking finance companies, with operations in asset management, life insurance, general insurance, stockbroking, and other financial services.
Nippon India Mutual Fund is a leading asset management firm in India. Reliance Mutual Fund was founded in June 1995 as a joint venture between India’s Reliance Capital and Japan’s Nippon Life Insurance. Nippon bought Reliance’s interest in the fund house in October 2019, and it was renamed Nippon India Mutual Fund.
Nippon Mutual Funds is in charge of Rs.2,07,288 crores in assets. Nippon mutual funds schemes currently offer 52 equity, 266 debt, and 40 balanced funds. Sundeep Sikka, the company’s CEO, is in charge. Nippon Life India Asset Management Limited is a company that manages investments. Individuals, institutions, trusts, and private funds can use the company’s portfolio management, mutual fund investment, financial planning, and advising services.
Nippon Life Insurance Firm (NLI) is a large private life insurance company in Japan, providing a diverse variety of financial and traditional insurance products. NLI manages assets globally through its subsidiary Nissay Asset Management Corporation (“Nissay”), which is responsible for asset management in Asia.
Where can you get liquid BeES?
After booking profits from shares or when there is no realistic investment opportunity, equity investors must maintain idle money (without earning any interest) in their trading account. They can put the money in a savings account to generate interest. Transferring money to and from a trade and bank account, on the other hand, comes with complications and transaction costs. Investing in liquidbees takes care of everything and saves you time. It also pays a higher rate of return than a 4 percent savings account. To learn more about it, read the entire article.
GS Liquidbees (Presently Name Changed to Reliance Liquidbees) –
The Liquid Exchange Traded Scheme (also known as liquidbees) is an open-ended liquid scheme that pays a daily dividend and requires dividend reinvestment. The GS liquidbees ETF (Exchange Traded Fund) is the world’s first liquid ETF. The name has recently been changed to Reliance Liquidbees, but everything else remains the same. (Note that the stock exchange only has one liquidbees.) Marketable instruments that track an index, commodity, bond, or a basket of assets are known as ETFs. Unlike mutual funds, an ETF trades on a stock exchange like a common stock. ETFs provide more liquidity and lower transaction costs than mutual funds or individual stocks. Investors seeking current income with low risk and a high level of liquidity will benefit from GS liquidbees. Liquidbees invests in government securities, Treasury bills, call money, collateralized lending and borrowing obligation (CBLO)/similar instruments, reverse repos and repos (65 percent to 100 percent), and other money market products (0 percent to 35 percent ). As a result, it generates a respectable return while preserving safety and liquidity. On liquidbees schemes purchased and sold on the NSE or through the fund, there is no entry or exit load. The scheme’s performance is measured against the CRISIL Liquid Fund Index.
How to buy ( and sell ) liquidbees?
Liquidbees can be purchased directly from the fund or through the NSE, where they are traded. If you buy directly from the fund through the Mutual Fund Service System (MFSS), you must buy in lots of at least 2500 units in multiples of one unit. As a result, you’ll need to invest a minimum of Rs 2,50,000 (2500 units*1000). However, if you buy from the stock exchange (NSE), you can buy 1 unit and multiples of it. As a result, you can invest as little as Rs1000 (1 unit*1000) on the NSE. Similarly, if you want to redeem directly from the fund, you can do so in lots of 2500 units and multiples of 0.001 units. You can redeem 0.001 units and multiples thereof from the stock market (NSE). Liquidbees is settled on a T+2 basis in the Rolling Segment. Only in electronic (demat) mode can it be settled.
As a result, the NSE is the most convenient option to buy in liquidbees (stock exchange). You can invest in liquidbees from your existing trading+demat account, just like you can buy equity shares from your trading account. (NSE symbol LIQUIDBEES; full name Reliance Liquidbees can be found in some brokerages)
Returns from liquidbees
The pricing of liquidbees (listed on the NSE) has remained constant at Rs 1000 per unit. You might be wondering how you can make a profit while the price isn’t changing. This is because the scheme’s returns come to you in the form of a daily dividend, which must be compulsorily reinvested in the scheme. The units you receive as a result of dividend reinvestment are credited to your account once a month. The fund allows investors to buy back fractional units that have been credited as a result of dividend payments. Liquidbees is set up in such a way that it will try to keep the NAV at a constant level by distributing money as it comes in. The fund has earned an annualised return of 7.15 percent over the last 5 years, and a return of 6.41 percent during the last year. Returns are not taxable since they are distributed in the form of dividends, which are not taxed in the hands of the investor.
Why and when is it beneficial to equity investor
When money is sitting idly in an equities investor’s trading account and earning no income, Liquidbees comes in handy (return.) This might happen when there are no feasible investing options or when profits from stock sales have been booked. In these situations, investors typically transfer money to their savings bank account to generate interest until a new investment opportunity presents itself. A/can equity investor who has idle capital in trading can gain from engaging in the liquidbees program since it:
- saves time and effort in transferring funds between trading and savings accounts
- Because liquidbees is very liquid, it allows stock investors to take advantage of new investment opportunities (whenever they exist) right now.
As a result, the liquidbees ETF strategy can be beneficial to investors searching for:
