Nifty 50 Exchange Traded Fund (ETF) like 'Niftybees', is't safest bet?

Is the Nifty 50 Exchange Traded Fund (ETF) like NiftyBeES best and safest in the share market as market is falling and you are tempted to invest in the stocks which you always wanted to buy?

Because as soon as you get into the stock, the share price of that particular stock starts falling, left you in frustration. This is the normal story of most of the investors. So, what is the solution, how to skip this up and down cycle and almost be sure not to lose your hard-earned money?

In nifty on NSE, there are 50 stocks any time which gets changed based on the market value of stocks time to time. Likewise there are 30 companies in the Sensex on BSE, which gets updated time to time.

There was a time when many PSUs and bluechip companies like BHEL, GAIL, Hindalco, Reliance communication, MTNL etc. were the part of Nifty or Sensex in the past, but now they are not. So, likewise out of 50 stocks today, many stocks won’t be in the future.

So, If I invest seeing nifty stocks today for long-term, then may be that stock would not be the part of Nifty after 2 / 3 / 5 years. But, Nifty or Sensex may zoom ahead as always these will include best 50 and best 30 stocks respectively based on their trading pattern, volume and value.

ETF, Exchange Traded Fund – what is ETF?:

So, to overcome all these above problems, Exchange Traded Fund like niftybees, ICICINIFTY, SETFNIF50 etc. seems the panacea, solution of all problems. ETF is a ‘group of stocks’ following the underlying index. ETF is traded like equity share. ETFs are of many types: Index ETF like Nifty 50 ETF, Sensex ETF, Nifty Next 50 ETF, Sector themed ETF like Bank ETF, IT ETF, Auto ETF, Gold ETF, PSUs ETF etc.

Many Mutual fund houses and others like Government launch these ETFs and list on the exchanges like NSE and BSE. A manger manages all the fund activities and acts according to the theme of ETF. Cost is also very less in comparison to the normal mutual fund as manager has to replicate only here without any brainstorming.

Like on 14th Jan 2020, Nifty 50 index was 12,362 and Niftybees share price was 131 but on 26th May 2020, Nifty 50 index was on 9,029 and Niftybees share price was 96. So, it is still 36 % left to touch the same position. And for our country like India, there are still miles to go as we are still developing and towards the developed.

So, if you want to avoid all the uncertainties of stock, Mutual fund, Fixed deposit in banks etc, just follow Nifty ETF. Only caution here is that, the returns in good days may seem less in it, but almost certain.

Click here for Comparison of all Govt. banks’ FD interest rates in a single table.

Nifty 50 ETFs (Exchange Traded Fund) listed on NSE:

Today’s equity ETF like Niftybees share price can be checked by clicking on underlined NSE symbol like NIFTYBEES in the below table.

S.N.	Nifty ETF Listed on NSE	Type	NSE Symbol	Daily Volume	% of All
1	NIPPON INDIA ETF NIFTY BEES	Equity	NIFTYBEES	2194346	87.779
2	ICICI Prudential Nifty ETF	Equity	ICICINIFTY	131478	5.259
3	SBI-ETF Nifty 50	Equity	SETFNIF50	117826	4.713
4	Kotak Nifty ETF	Equity	KOTAKNIFTY	39015	1.561
5	UTI-Nifty ETF	Equity	UTINIFTETF	7760	0.310
6	LIC MF ETF	Equity	LICNETFN50	2782	0.111
7	Motilal Oswal MOSt Shares M50 ETF	Equity	M50	2698	0.108
8	HDFC Nifty ETF	Equity	HDFCNIFETF	1754	0.070
9	Tata Nifty ETF	Equity	NETF	1736	0.069
10	Aditya Birla Sun Life Nifty ETF	Equity	BSLNIFTY	218	0.009
11	Indiabulls Nifty50 ETF	Equity	IBMFNIFTY	98	0.004
12	IDFC Nifty ETF	Equity	IDFNIFTYET	93	0.004
13	AXIS NIFTY ETF	Equity	AXISNIFTY	41	0.002
14	Invesco India Nifty ETF	Equity	IVZINNIFTY	6	0.000
15	Quantum Nifty ETF	Equity	QNIFTY	4	0.000
16	Edelweiss ETF – Nifty 50	Equity	NIFTYEES	0	0.000

Trading volumes of all Nifty ETFs on NSE in Pie-Chart:

So, which Nifty 50 ETF is best? we can take help from volume of traded shares of all listed NIfty 50 ETF, and then take a call.

Nifty 50 Exchange Traded Fund (ETF) like 'Niftybees', is't safest bet? - only30sec.com (1)

In the above table and pie-chart of all the listed Nifty ETFs, Exchange Traded Fund, the most traded volume-wise ETFs (dated 26.05.2020) are NIPPON INDIA ETF NIFTY BEES, ICICI Prudential Nifty ETF and SBI – ETF Nifty 50, which contributes more than 95% of total traded ETF.

Historical performance between ETF Niftybees share price and Nifty 50:

It is clear from the graph that Nifty ETF, Exchange Traded Fund follows the Nifty 50 index very closely and looks like its mirror-image. Here, Niftybees share price is similarly following the Nifty 50 index.

Nifty 50 Exchange Traded Fund (ETF) like 'Niftybees', is't safest bet? - only30sec.com (2)

So, irrespective of any duration or period, finally it can be said that stocks will continue to come and go, but the index Nifty 50 on NSE will go on as ever and it may touch even 15000, 20000, 25000 etc. So, investing in Nifty 50 ETF on NSE might be the best investment idea in the stock market.

Also read : Comparison of FD interest rates of ICICI, HDFC, AXIS banks.

But, we must invest in Nifty 50 ETF, Exchange Traded Fund like niftybees, ICICINIFTY, SETFNIF50 etc. in staggered way or in steps to take the advantage of falling market.

So, best of luck. Happy Nifty 50 ETF investing.

Disclaimer: As this article is a guidance only, so kindly consult your financial advisor before investment

Nifty 50 Exchange Traded Fund (ETF) like 'Niftybees', is't safest bet? - only30sec.com (2024)

FAQs

What is the difference between Niftybees and NIFTY 50? ›

Units: Each unit of Nifty BeES is 1/10th part of the S&P CNX Nifty index value and 1/100th part of the Nifty 50 Index value. NAV: The NAV computation is on a real-time basis as it trades on the stock exchange (NSE). Buying and Selling: Nifty BeES units are traded in dematerialized form.

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Is it safe to invest in Niftybees? ›

It is easily bought and sold, since it's traded on the National Stock Exchange. It is thus to protect long-term investors from the effects of trade activity and additional costs for short-term investors. Thus, NSE Nifty BeES can be regarded as a good investment.

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Is it good to invest in NIFTY 50 ETF? ›

Lower costs: Compared to investing in actively managed funds, ETF fees are relatively lower, reducing your overall investment expenses. Long-term growth potential: Over time, the Indian economy and its leading companies are expected to grow, potentially leading to capital appreciation in your Nifty 50 ETF investment.

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What is the difference between NIFTY 50 ETF and NIFTY 50 index fund? ›

ETFs are known to be traded in mostly intraday shares via AMCs and can give higher profits. Index Funds are known to trade primarily in securities via AMCs and offer more security in investment. In comparison to index fund vs etf, ETFs are a much riskier form of investment than Index Funds.

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Is Niftybees better than mutual funds? ›

2. Which is better Nifty ETF or Nifty Mutual fund? The answer depends on your investment goals and risk tolerance. Nifty ETFs offer high liquidity and lower fees, while Nifty Mutual Funds may offer more diversification and professional management.

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Does Niftybees pay dividends? ›

Dividend Policy of Nippon India ETF Nifty BeES

The dividend is paid to the unitholder after deducting the applicable taxes at source. The dividend is typically distributed within 30 days from the date of declaration of the dividend.

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Which company comes under Niftybees? ›

Nippon India ETF Nifty 50 BeES Share Holdings

Company	Assets	Market Price
Reliance Industr	10.22	2,905.10(-0.51%)
ICICI Bank	7.80	1,107.90(-0.53%)
Infosys	5.43	1,430.25(-0.57%)
Larsen & Toubro	4.52	3,605.20(-1.29%)

46 more rows

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What is the difference between Niftybees and Nifty ETFs? ›

"Niftybees" is actually an ETF (Exchange-Traded Fund) that tracks the performance of the Nifty 50 index, which is a stock market index in India. Therefore, there is no difference between "Niftybees" and an ETF. Instead, "Niftybees" is a specific ETF that focuses on replicating the Nifty 50 index.

What are the charges on Niftybees? ›

Nifty BeES is a no load scheme. The annual expense ratio including management fees is a maximum of 0.80% of the Daily Average Net Assets, which is one of the lowest for any mutual fund scheme in India. The costs reduce further to 0.65%, for assets over Rs.

Is Nifty 50 Index Fund risky? ›

Like all stock/mutual fund investments, your investment in the Nifty Total Market Index is subject to market risks. The main drawback of investing in a Nifty total market index fund is that it tracks the performance of 750 plus stocks representing broadly the entire stock market.

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Is Nifty 50 safe for long term investment? ›

Well, NIFTY 50 can be an excellent way to invest for the long term and build wealth. It gives you a unique opportunity to diversify your investments across the most successful players in the market with much-desired flexibility to enter and exit.

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Is Nifty 50 ETF good for long-term? ›

High liquidity ensures that investors can enter and exit positions without significant impact costs, making Bank Nifty ETFs a suitable option for short-term traders and long-term investors alike.

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Is it better to invest in Nifty 50 or Nifty 100? ›

2. Risk and Return. Nifty 50: The Nifty 50 comparison reveals a safer bet due to the size and stability of the companies included. However, with this reduced risk often comes a lower return, as these companies might have a different rapid growth potential than smaller, more agile companies.

Why is Niftybees not giving dividends? ›

Every ETF company (AMC) has a board which decides to pass on the dividends or not. If the board decides not to pass on the dividend, then they retain the cash and the cash component increases. Given this, the cash component has swelled in Nifty 50 since 2015.

Which is better, Nifty Bee's or Nifty 50? ›

Comparing NIFTY 50 ETFs and NIFTY 50 Index Fund

Let's look at their expense ratio and their tracking error too. From the above tables, Nippon India ETF NIFTY 50 BeES has a lower tracking error, lower expense ratio, and slightly higher returns.

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What is the relationship between Nifty and niftybees? ›

Nifty BeES, a combination of a share and a mutual fund unit, trades on the capital market segment of NSE (National Stock Exchange). Each Nifty BeES unit is 1/10th of the S&P CNX Nifty Index value. Nifty BeES units are traded and settled in dematerialised form like any other share in the rolling settlement.