Posts Tagged ‘Open-Ended Exchange Traded Mutual Fund’

Nifty BeES ! (Nifty Benchmark Exchange Traded Scheme)

Nifty Bees

Nifty Bees

1. What is Nifty BeES?

Nifty BeES is an Open-Ended Exchange Traded Mutual Fund. It is a combination of a share and a Mutual Fund Unit. Nifty BeES tracks the S&P CNX Nifty Index.

The investment objective of Nifty BeES is to provide investment returns that, before expenses, closely correspond to the total returns of the S&P CNX Nifty Index.

Nifty BeES is listed on the Capital Market Segment of the NSE.

2. How is Nifty BeES different from Nifty Futures?

Nifty BeES & Nifty Futures both allow investors to take exposure to the Nifty Index. However, Nifty Futures are derivative products and trade in the F&O segment of NSE, while Nifty BeES is a cash product and trades in the Capital Market Segment.

Unlike futures, there is no lot size for Nifty BeES, you can buy as little as one unit.

As Nifty BeES is traded in the cash segment, you do not need to roll it over every month and can hold it as for long as you want. In terms of Taxation, with Index Futures it is not possible to take advantage of Long Term Capital Gains while with Nifty BeES you can take advantage of Long Term Capital Gains if you hold it for over a year.

3. Can one buy & sell any time during trading hours?

Yes, one can buy or sell Nifty BeES just like one buys or sells any other share. It trades on the capital market segment of NSE and is settled just like any other shares on T+2.
4. About Benchmark :

Benchmark Asset Management Company Pvt. Ltd. (BAMC) is a SEBI registered Asset Management Company launched in June 2001. BAMC is the first and only asset management company in India with a primary focus on indexing and using quantitative techniques in creating innovative products. Benchmark is run and co-promoted by professionals with a long experience in the Indian and International Financial Markets.
Benchmark Milestones

·First AMC in Asia (ex Japan) to launch ETF, and only 18th in the World

·Launched the First ETF in India – Nifty BeES

·Nifty BeES has been awarded the “Best Performing Mutual Fund of the Year in the index fund category at the CNBC-TV18-CRISIL Mutual Fund Awards in 2007 & 2008

·BAMC is the largest Index Fund Manager and the largest ETF manager in India

·BAMC was the first AMC to conceptualize the idea of a Gold ETF in the world

·BAMC has been ranked as the “Best Provider of Structured Products” in their Private Banking Poll 2006, by Euro money
Details of other ETFs:

·Nifty BeES: The First ETF in Asia (Barring Japan)

·Junior BeES: The First and only Midcap Index Fund and ETF in India.

·Bank BeES: The First and only Sector Index Fund and ETF in India.

·PSU Bank BeES: The First PSU Bank Sector Index Fund and ETF in India.

·Gold BeES: The First Gold ETF in India.

·Liquid BeES: The First and only Liquid ETF in the world

·Shariah BeES : First Shariah based ETF in India