{"id":4607,"date":"2021-09-21T12:24:03","date_gmt":"2021-09-21T06:54:03","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=4607"},"modified":"2023-02-07T14:45:07","modified_gmt":"2023-02-07T09:15:07","slug":"what-is-nifty-bees","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/","title":{"rendered":"Nifty BeES &#8211; Meaning, Price, and How To Invest"},"content":{"rendered":"\n<p>Every <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a> beginner is aware of Exchange Traded Funds (ETFs), a single fund with a diversified collection of stocks. It is not just a good investment option for a new investor in the stock market but also for seasoned investors. There are several ETFs in the market, and an <a href=\"https:\/\/www.tickertape.in\/blog\/exchange-traded-funds\/\">ETF<\/a> that follows the Nifty 50 <a href=\"https:\/\/www.tickertape.in\/blog\/stock-market-index\/\">Index<\/a> is the Nifty BeES.&nbsp;<\/p>\n\n\n\n<p>In this article, let\u2019s learn about Nifty BeES, its working, the companies involved, how to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> and its benefits.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#What-is-Nifty-BeES\" title=\"What is Nifty BeES?\">What is Nifty BeES?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#How-do-the-Nifty-BeES-work\" title=\"How do the Nifty BeES work?\">How do the Nifty BeES work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#What-are-Nifty-BeES-companies\" title=\"What are Nifty BeES companies?\">What are Nifty BeES companies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#How-to-invest-in-Nifty-BeES\" title=\"How to invest in Nifty BeES?\">How to invest in Nifty BeES?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#Benefits-of-Nifty-BeES\" title=\"Benefits of Nifty BeES\">Benefits of Nifty BeES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#Things-to-remember-when-investing-in-Nifty-BeES\" title=\"Things to remember when investing in Nifty BeES\">Things to remember when investing in Nifty BeES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#Is-Nifty-BeES-right-for-you\" title=\"Is Nifty BeES right for you?\">Is Nifty BeES right for you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#The-bottom-line\" title=\"The bottom line\">The bottom line<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#What-is-the-Nifty-BeES-ETF\" title=\"What is the Nifty BeES ETF?\">What is the Nifty BeES ETF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#What-is-Nifty-BeES-share-price-on-NSE\" title=\"What is Nifty BeES share price on NSE?\">What is Nifty BeES share price on NSE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-nifty-bees\/#What-is-Nifty-BeES-return\" title=\"What is Nifty BeES return?\">What is Nifty BeES return?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-Nifty-BeES\"><\/span><strong>What is Nifty BeES?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/etfs\/nippon-india-nifty-50-bees-etf-NBES?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty BeES<\/a> stands for \u2018Benchmark Exchange Traded Scheme\u2019. It was introduced by an Asset Management Company called \u2018BENCHMARK\u2019 on 8th January 2022 and is currently managed by Nippon India Mutual Fund.<\/p>\n\n\n\n<p>It is an Exchange Traded Fund (ETF) that tracks the S&amp;P CNX Nifty index to replicate its returns. Like other ETFs, Nifty BeES is listed and traded on the stock exchange.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-do-the-Nifty-BeES-work\"><\/span><strong>How do the Nifty BeES work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Nifty BeES was launched in 1992 as the first ETF in India. The ETF is listed on the National Stock Exchange (<a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a>).&nbsp;<\/p>\n\n\n\n<p>Each unit of the Nifty BeES fund is equal to 1\/10th of the S&amp;P CNX Nifty Index or commonly called <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-50-index-.NSEI\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty 50<\/a> (an index that tracks the top 50 companies from across sectors). The face value of each unit is Rs.10, but depending on the trading volume and demand and supply, the per-unit market price fluctuates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-are-Nifty-BeES-companies\"><\/span><strong>What are Nifty BeES companies?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are the top 10 Nifty BeES companies. The data is as of 6th February 2023.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>S. No.<\/strong><\/td><td><strong>Stock name<\/strong><\/td><td><strong>Total Holdings (%)<\/strong><\/td><\/tr><tr><td>1.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/reliance-industries-RELI?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Reliance Industries<\/a><\/td><td>10.98<\/td><\/tr><tr><td>2.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/hdfc-bank-HDBK?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">HDFC Bank<\/a><\/td><td>8.96<\/td><\/tr><tr><td>3.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/icici-bank-ICBK?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">ICICI Bank<\/a><\/td><td>7.99<\/td><\/tr><tr><td>4.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/infosys-INFY?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Infosys<\/a><\/td><td>6.90<\/td><\/tr><tr><td>5.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/housing-development-finance-corporation-HDFC?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Housing Development Finance Corporation Limited (HDFC)<\/a><\/td><td>5.94<\/td><\/tr><tr><td>6.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/tata-consultancy-services-TCS?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tata Consultancy Services<\/a><\/td><td>4.17<\/td><\/tr><tr><td>7.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/itc-ITC?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">ITC<\/a><\/td><td>3.65<\/td><\/tr><tr><td>8.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/kotak-mahindra-bank-KTKM?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Kotak Mahindra Bank<\/a><\/td><td>3.32<\/td><\/tr><tr><td>9.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/axis-bank-AXBK?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Axis Bank<\/a><\/td><td>3.16<\/td><\/tr><tr><td>10.<\/td><td><a href=\"https:\/\/www.tickertape.in\/stocks\/larsen-and-toubro-LART?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Larsen &amp; Toubro<\/a><\/td><td>3.15<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-invest-in-Nifty-BeES\"><\/span><strong>How to invest in Nifty BeES?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can invest in Nifty BeES just like any stock or mutual fund. You need a Demat account and <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-a-trading-account\/\">trading account<\/a> to complete the investment. According to the prevailing market rates, you can buy or sell Nifty BeES at any time of the day (trading hours).&nbsp;<\/p>\n\n\n\n<p>You can invest in Nifty BeES through <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-sip\/\">SIP<\/a> or a lumpsum plan. In the case of lumpsum investment, you can buy several units at real-time prices. While in SIP, you can pick a date and start making monthly instalments.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits-of-Nifty-BeES\"><\/span><strong>Benefits of Nifty BeES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since <a href=\"https:\/\/www.tickertape.in\/etfs\/nippon-india-nifty-50-bees-etf-NBES?utm_source=blog&amp;utm_medium=article\">Nifty BeES<\/a> combines the features of <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a> and stocks, it offers a multitude of benefits to investors. These benefits are as follows:<\/p>\n\n\n\n<ul><li><strong><a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/\">Diversification<\/a><\/strong> &#8211; Like other <a href=\"https:\/\/www.tickertape.in\/blog\/4-factors-to-consider-before-investing-in-index-funds\/\">index funds<\/a>, Nifty BeES tracks and invests in the stock market across 22 sectors. This builds up a diversified portfolio which helps in risk mitigation.<\/li><li><strong>Liquidity<\/strong> &#8211; There is no lock-in period or maturity tenure under Nifty BeES. You can exit from the scheme and redeem your investment at your discretion. No exit load is applicable on redemption, and you can sell off your units in real-time on the stock exchange.&nbsp;<\/li><li><strong>Low-cost investment<\/strong> &#8211; Nifty BeES is a very economical investment avenue. While it gives you a diversified portfolio like mutual funds, the expenses involved are meagre.<\/li><li><strong>Ease of buying<\/strong> &#8211; Since Nifty BeES is listed on the stock exchange, it is available to all investors. With a Demat account, one can purchase the scheme in real-time. The minimum investment is Rs. 500. There is no maximum limit to the investment, which makes Nifty BeES suitable for small and large investors.<br>Nifty BeES imitates the Nifty 50 index. There is no prejudice or bias exercised by the fund manager when allocating the portfolio. The portfolio allocation matches the benchmark index, making the scheme completely transparent for investors.<\/li><li><strong>Inflation-adjusted returns<\/strong> &#8211; The stock market is interlinked to the economy. Hence, economic inflation is considered in the movement of the stock market. As such, the returns that one gets from Nifty BeES is inflation-adjusted and relevant for long-term needs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Things-to-remember-when-investing-in-Nifty-BeES\"><\/span><strong>Things to remember when investing in Nifty BeES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is important to note that Nifty BeES is not the same as Nifty\/Index funds. While Nifty BeES exhibits the features of an ETF, <a href=\"https:\/\/www.tickertape.in\/blog\/index-funds\/\">index funds<\/a> clone mutual funds. Also, Nifty BeES can easily be liquidated in contrast to an <a href=\"https:\/\/www.tickertape.in\/blog\/index-funds-2\/\">index fund<\/a>. Another fundamental difference between the two is that Nifty BeES are better preferred for trading, while index funds are used to build long-term portfolios.<\/p>\n\n\n\n<p>But given the benefits mentioned above, one might be tempted to invest in Nifty BeES. However, one should keep a few things in mind before investing:<\/p>\n\n\n\n<ul><li>Nifty BeES is an equity-oriented scheme. As such, it is exposed to <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">volatility<\/a> risks. You should have the appetite to bear the risk if you invest in the scheme.<\/li><li>Though the scheme tracks the S&amp;P CNX Nifty Index, the returns might not match due to the possibility of a tracking error.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is-Nifty-BeES-right-for-you\"><\/span><strong>Is Nifty BeES right for you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you want to invest in the Nifty 50 index and want a diversified portfolio, Nifty BeES can be an ideal solution. It offers a low-cost investment opportunity with added liquidity, in turn helping you earn attractive returns. If you have a long-term horizon, the risks would be mitigated, and you could enjoy capital appreciation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The-bottom-line\"><\/span><strong>The bottom line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nifty BeES is an ideal choice for investors looking to test <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> markets while negating their risk. While returns on this investment can be attractive, the risks associated could be high too.&nbsp;<\/p>\n\n\n\n<p>You can use <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape Stock Screener<\/a> to analyse the Nifty 50 companies according to key parameters like market cap, 1-yr returns, 5-yr <a href=\"https:\/\/www.tickertape.in\/blog\/compound-annual-growth-rate\/\">CAGR<\/a>, net profits, and more.&nbsp;<\/p>\n\n\n\n<p>Assess your investment needs before you make investment decisions. Understand your financial goals, and then invest accordingly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1675761092083\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-Nifty-BeES-ETF\"><\/span><strong>What is the Nifty BeES ETF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Nifty BeES ETF is an ETF that tracks the Nifty 50 index to replicate its returns. Like other ETFs, Nifty BeES is listed and traded on the stock exchange. Nippon India Mutual Fund currently manages it.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1675761099314\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-Nifty-BeES-share-price-on-NSE\"><\/span><strong>What is Nifty BeES share price on NSE?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Like other stocks on the stock market, the Nifty BeES share price also keeps changing daily. Visit the <a href=\"https:\/\/www.tickertape.in\/etfs\/nippon-india-nifty-50-bees-etf-NBES?utm_source=blog&amp;utm_medium=article\">Nippon India ETF Nifty BeES<\/a> page to get the current price of the ETF.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1675761111301\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-Nifty-BeES-return\"><\/span><strong>What is Nifty BeES return?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>As of 6th February 2023, the 1-yr returns are 4.71%, while 5-yr returns are 79.42%. And in the case of SIP, the 5-yr returns are 39.76%. Visit the <a href=\"https:\/\/www.tickertape.in\/etfs\/nippon-india-nifty-50-bees-etf-NBES?utm_source=blog&amp;utm_medium=article\">Nippon India ETF Nifty BeES<\/a> page to get the current returns of the ETF.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Looking to understand what is nifty bees &#038; how to invest in it? Click here to understand nifty bees meaning, its advantages &#038; the process of investing in nifty bees.<\/p>\n","protected":false},"author":90,"featured_media":4462,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1763],"tags":[777],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/3.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4607"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=4607"}],"version-history":[{"count":16,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4607\/revisions"}],"predecessor-version":[{"id":11896,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4607\/revisions\/11896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4462"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=4607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=4607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=4607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}