Decoding Nifty Bees: What it is, How to Invest and Benefits

30 January, 2025

Synopsis

• As an Exchange Traded Fund (ETF), NIFTY BeEs may offer security and ease of diversification during uncertain economic conditions.
• Nifty BeEs tend to have a low expense ratio and high liquidity.
• Nifty BeES may be potentially economical investments.
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Nifty BeEs, introduced in December 2001, was designed to mirror the Nifty 50 Index. As the first-ever Exchange-Traded Fund (ETF), Nifty BeEs provides simplicity and ease of investment. Its dematerialised format and same-day transactions also add to its popularity and boost investor confidence with real-time NAV (Net Asset Value). This article will help you understand what are Nifty BeEs in detail, its benefits to investors and how to buy .

Understanding What Is Nifty Bees?

“Nifty” refers to the index being tracked and “BeEs” stands for benchmark exchange-traded scheme. In simple words, Nifty BeEs is a unique investment option that tracks the Nifty 50 Index. So, anyone investing in Nifty BeEs is investing in the same stocks listed under the Nifty 50 Index.

What Are The Benefits Of Investing In Nifty BeEs?

• Hassle-free investing: Nifty BeEs can be traded easily using a demat and trading account. The funds invested track the underlying index, thereby matching market performance with minimum errors.
  
  

• Easy trading: Nifty BeEs are traded in real-time and within market hours. As an investor, you can transact with your demat account and place orders yourself with limit orders to minimise loss.
  
  

• Low expense ratio: ETFs are always a hit investment option due to their low expense ratio. With Nifty BeEs, things are no exception either. Also, there's no exit load. The cost is only a small percentage of investment which may vary depending on the investment amount.
  
  

• High liquidity: Nifty BeEs can be traded like individual stocks. So, investors can access high liquidity by exploring options like arbitrage via index futures or authorised participants with all underlying shares.
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• Transparency: Nifty BeEs investments are transparent as you can track their fund status and exact position.
  
  

How To Invest In Nifty BeEs?

Whether you're a novice or a seasoned investor, investing in Nifty BeEs is easy. Here's a step-by-step guide to follow.

• Step 1: Select a demat account with access to the stock exchange where Nifty BeEs are traded. If you're an NRI, ensure the account allows investments in Indian securities.

• Step 2: Decide on the number of Nifty BeEs shares you want to buy with sufficient fund in your account.

• Step 3: Before you invest, spend some time understanding the performance of a particular Nifty BeEs.

• Step 4: Check the ETF's ticker symbol and number of shares you want.

• Step 5: Review your order before the brokerage can process it.
  
  

Invest in Nifty BeEs With HDFC Bank 2-In-1 Demat Account

In an ever-changing economy, you can consider investing in Nifty BeEs to diversify your investment portfolio. You can buy and sell Nifty BeEs easily. All you need is a Demat and Trading account to get started.

With HDFC Bank’s 2-In-1 Demat account, you can do more and save your time. The unique combination of Savings Account, Trading Account and Demat Account allows seamless allocation of funds and transfer of securities without having to wait too long.

Open your HDFC Bank 2-in-1 Demat Account now! Get started here.

*Disclaimer: Terms and conditions apply. This article is only for educational/ informational purpose. It does not make any recommendation to act or invest. Investments in securities market are subject to market risks, read all the related documents carefully before investing. or invest.