The Nifty Bees ETF seeks to match the performance and yield of the CNX Nifty50 Index before fees and expenses. The fund holds all of the CNX Nifty 50 stocks in similar proportion as they are in the Nifty50 Index. Any investor who wishes to diversify his / her portfolio and wants to invest in the top companies of the Indian Economy can do so by investing in the Nifty Bees ETF which will replicate the Nifty 50 index. Therefore, the performance of Nifty bees Index generally match up the performance of the Nifty 50 Index.

 

About the Benchmark

CNX Nifty Index

The Nifty 50 Index is considered to be a mirror image of the Indian equities, as the index represents stocks of the 50 most valued companies in the India listed on the NSE that spans over 23 sectors of Indian economy. These top 50 listed companies represents some Rs. 28,36,169 crores of market capitalization i.e. more than 66% of all the 1600 listed companies on the National Stock Exchange of India.

It has to be kept in mind that the goal of an Index ETF is to emulate an underlying index, not outperform it.
For more about CNX Nifty 50, Visit our article Introduction to CNX Nifty & Trading Nifty Futures.

 

Industry Allocation

From the above pie chart, Investment in Nifty bees give exposure to all the wide sectors of the Indian Economy. So, any investor portfolio would not be prone to the risk of any sector as fund is diversified in top stocks of different industries.

 

Top 10 Holding

Company Industry Weightage* (%)
Infosys Ltd Software 7.78 %
HDFC Bank Ltd Banks 7.54 %
Housing Development Finance Corporation Ltd Finance 7.03 %
ITC Ltd Consumer Non Durables 6.49 %
Reliance Industries Ltd Petroleum Products 5.91 %
ICICI Bank Ltd Banks 5.35 %
Tata Consultancy Services Software 4.42 %
Larsen & Toubro Ltd Construction Projects 3.68 %
Sun Pharma Industries Ltd Pharma 3.15 %
Tata Motors Ltd Auto 2.67 %

* As on Dec 31st, 2015

The above list illustrate that more than 50% of investor fund will be invested in these top 10 companies from different sectors. So, investment risk of any stock will be eliminated by investing in the Nifty bees ETF as the investor has exposure to a number of companies and which in turn are from different sectors.

For complete list of stocks sorted by percentage As on Dec 31st, 2015, Download Niftybees Portfolio

 

Recent Changes of Stocks in Nifty Index

Index Name Event Date Scrip Name Description
Nifty 50 01-04-2013 IndusInd Bank Ltd. Inclusion into Index
Nifty 50 01-04-2013 NMDC Ltd. Inclusion into Index
Nifty 50 01-04-2013 Siemens Ltd. Exclusion from Index
Nifty 50 01-04-2013 Wipro Ltd. Exclusion from Index
Nifty 50 27-09-2013 Wipro Ltd. Inclusion into Index
Nifty 50 27-09-2013 Reliance Infrastructure Ltd. Exclusion from Index
Nifty 50 28-03-2014 Jaiprakash Associates Ltd. Exclusion from Index
Nifty 50 28-03-2014 Ranbaxy Laboratories Ltd. Exclusion from Index
Nifty 50 28-03-2014 Tech Mahindra Ltd. Inclusion into Index
Nifty 50 28-03-2014 United Spirits Ltd. Inclusion into Index
Nifty 50 19-09-2014 United Spirits Ltd. Exclusion from Index
Nifty 50 19-09-2014 Zee Entertainment Enterprises Ltd. Inclusion into Index
Nifty 50 27-03-2015 DLF Ltd. Exclusion from Index
Nifty 50 27-03-2015 Jindal Steel & Power Ltd. Exclusion from Index
Nifty 50 27-03-2015 Idea Cellular Ltd. Inclusion into Index
Nifty 50 27-03-2015 Yes Bank Ltd. Inclusion into Index
Nifty 50 29-05-2015 IDFC Ltd Exclusion from Index
Nifty 50 29-05-2015 Bosch Ltd. Inclusion into Index
Nifty 50 28-09-2015 NMDC Ltd. Exclusion from Index
Nifty 50 28-09-2015 Adani Ports and Special Economic Zone Ltd. Inclusion into Index

From the above table, these are the stocks which are recently being added or deleted from the Nifty 50 Index, So same has been replicated in the Nifty bees invested portfolio.

For the complete list of stock changes from the Nifty 50 Index 1996, Download Nifty50 Index Addition & deletion Since 1996

 

Historical Timeline

NiftyBees
NiftyBees

 

Why to Invest in Nifty Bees?

 

Investment in Broad Market

Any investor who wishes to invest in the growth of the Indian economy and not any particular sector or any company can do so by investing in Nifty50 Index. Niftybees gives the investor the exposure to the broad market and replicate the performance of the Indian Economy. Similarly, any institution who wishes to have international exposure in India or to hedge foreign investing risk prefer investing via Index ETFs.

 

Portfolio of Diversified Business in Top Capitalized Companies

Investment in Nifty 50 index will give an investor exposure to the well-diversified sectors including Financials, Information Technology, Energy, Consumer Goods, Automobiles, and Pharma, etc and the index will always have the top performing and big companies like HDFC Bank, HDFC, Infosys, TCS, ITC, Reliance, Larsen & Turbo, Sun Pharma, Maruti, etc. from these different sectors.
So, the investment of investor will always be in the top companies of Indian economy from the different sectors. The companies which majorly impacts their respective sectors by having a big segment of customer base and services and products. Therefore, by investing the Nifty50 Index, investor will be exposed to the top 50 companies of Indian economy in their respective sectors.

 

Benefit of Principle of Replacement

As Niftybees seeks to replicate the performance of the Nifty 50 Index, so the constituents in Niftybees is same as that of Nifty 50 which in case of Nifty 50 index are selected on the basis of the market capitalization. Therefore, the companies with the top 50 market capitalization from the different sectors of the Indian economy will only be the part of the Nifty 50 index.
Therefore, your investment will always have the top performing & big companies from their specific sectors who don’t perform (market capitalization falls) will be “AUTOMATICALLY” replaced by those other companies who perform (market capitalization rises).

 

Ease of Buying, Selling & Tracking the Portfolio Performance

Buy/ sell the broad Indian market in one ETF unit. At present, Nifty Bees is quoting at approximately Rs 800 (priced at 1/10th of the CNX Nifty Index).

 

Dividends Distributed

Type of distribution Record Date Dividend Per Unit
Dividend 20-Feb-15 Rs.8.00 per unit
Dividend 11-Mar-14 Rs.7.00 per unit
Dividend 14-Mar-13 Rs. 7.50 per unit
Dividend 12-Mar-12 Rs. 10.00 per unit
Dividend 09-Jul-09 Rs. 4.50 per unit
Dividend 15-Sep-08 Rs. 5.00 per unit
Dividend 08-Jan-07 Rs. 8.00 per unit
Dividend 18-Feb-05 Rs. 3.50 per unit
Dividend 21-Aug-03 Rs. 3.00 per unit

 

How to Invest in Nifty Bees ETF?

Any investor who wishes to buy or sell Nifty Bees ETF can do so from their Trading & D-mat account through their stock or financial broker.
Similar to stocks, Niftybees can be bought any time during the trading day at the market price and hold till the investor wishes to do so and will attract brokerage fees as in the case of buying stocks.

There are two ways investors can use these ETFs for investing.

Lump sum that is buying directly real time from the markets. Lump sum buying is generally preferably when the markets have corrected cyclically.

SIP that is buying in monthly installments just like SIP of Mutual Funds. Investment at every level of the market.

 

Key Facts

Benchmark IndexCNX Nifty Index
NSE Symbol – NiftyBees
BSE Code – 590103
ISIN – INE732E01011
Pricing – 1/10th of Index (Approx.)
Type of Fund – Open ended index scheme, listed on the exchange in the form of an Exchange Traded Fund (ETF)
Investment Objective – Replicate the total returns of the securities as represented by the Nifty 50 Index.
Taxation Treatment – Equity
Managers – Goldman Sachs Asset Management (India) Private Limited
Minimum Lot (Exchange) – One unit/share
Minimum Lot (Directly with Fund) – 5,000 units and in multiples thereof
Maximum Expense Ratio – 0.80% Annualized
Entry / Exit Load – Nil

 

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What is Nifty Bees ETF? How & Why to Invest in Nifty Bees?
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