Anyone can throw some light on NIFTYBEES - EQ (Benchmark Mutual Fund)?

What are the benefits to invest in this when market goes down?

rgds,

See this thread on Index-based ETF's.

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I read the related thread.. So the SPICE (Prudential ICICI) drops when sensex drops? is it same like Nifty bees?
which one is better to keep an eye?
rgds

Yes, both BeES and SPIcE move along with their respective underlying indices.

SPIcE is illiquid and thus it is better to opt for BeES.

Caution:

Before buying any ETF, make sure that the price is around the NAV of the fund.

Manipulation is common is such illiquid counters.

In 2005, the SPIcE (Sensex Prudential ICICI Exchange Traded Fund) was traded at 250+ levels...which is equivalent to Sensex at 25000.

As a result, SPIcE was suspended from trading for nearly a year.

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Thanks indeed for info.
btw I read threads stating that there is different charges if we buy Bees or SPIcE than the individual share?
What is the difference?
And how to calculate the Spice and Bees prices with BSE or NSE index?
rgds

Yes, I too didn't like the experience I had when selling BANKBEES (at a profit). The volumes are low, and that day there was a difference between the best buy and best sell that was quite substantial.

I'd stay away from ETFs unless its for a long term buy-n-hold (say GOLDBEES) asset diversification.

1 unit of SPIcE is 100 SENSEX points.

1 unit of Nifty BeES is 10 Nifty points.

Not sure about the exact charges. I will call up my broker today and ask him.

(I have never traded the ETF's).

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I just looked at the above on the NSE site. While, in the long term, the ETF may mimic the Nifty, intraday the picture is not quite the same!

If anyone logs onto the NSE site today and checks out the NIFTYBEES versus Nifty 50 for the period 14:49:33 - 14:54:41 you'll see what I mean.

The reason may be that each individual trade is based on the best buy and best sell at a given time (and not the index value!). Sounds obvious but I had missed the point so far!

yeah the prices are rigged too...the volumes are low & hence easy to manipulate. Also i dont know why each broker has a different price at that moment i have accounts with india infoline & sharekhan, both of these show different prices at the same time????

For long term investors, this is the best time to start dipping your beak into Nifty Bees gradually.

Interesting observation. Did you see this difference only once, only with NiftyBEES or do other ETFs have the same problem. I have only one account with Geojit-online and so can't check this point.

Though please make sure that both "feeds" from the brokers are live. Some have feeds even on their welcome sites that are delayed.

Dear
One question arise.
Who is managing ETF.
particular NIFTYBeES.IS it managed by SEBI.
It may foolish question but answer will help me to clear my doubt.
there is any chance for bankruptcy ?in that case what can be done ?
because ETF should be held 10 to 20 year to get good return,one should check for reliability of same.
please answer.

NIFTY BeES is managed by Benchmark Asset Management Company.

That's how "BeES" gets its name.

BeES = Benchmark Exchange Traded Scheme

Check about Nifty BeES at their site:

http://www.benchmarkfunds.com/niftybees.cgi

It is just like a mutual fund.

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Hi Mahen:

I think if you plan to hold the Nifty index for so many years, you can even buy units of a NIFTY index fund that is not traded online but has its NAV declared at the close of each trading day. You may check to see if such a mutual fund run by a public sector bank is available. That way you need not have to have a demat account, broker, etc.

Benchmark Asset Management Company is governmental body or private?

one another question to alchemist ,is it worth investment in ETF ?
low risk low return in ETF as per my knowledge. but Indian story is intact and nowadays most of large cap scrip trade at its historical low price then is it not good idea to invest directly in particular sectoral large player like bhel ,icici ,praj etc?

Benchmark is a private company.

You can invest in stocks directly, but make sure you diversify. You should have at least have 15 stocks in your portfolio...even if means buying Rs 2000 - Rs 3000 worth of each stock.

Times are uncertain and no one really knows what lies ahead.

Please make sure you understand the risks of investing in equities.

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Hi,

I want to start SIP on an Index ETF or Index fund and have several questions:

1. How does one locate the ICICIDIRECT codes for the various ETF? I notice that Alchemist has provided several codes but how did he get these?

2. Which is the EFT / Index fund with minimum expense ration, management fee, entry load, exit load etc.

I plan to hold these for more than 36 months.

Frankly I am quite surprised by the level of overhead expenses charged for index funds!! In the US several index ETFs are available at a expense rate of 0.07%!!

Regards,
Sudhanshu

you can use the search function at ICICIDirect.

if you can't find any particular fund, let me know.

moneycontrol.com has a list of all index funds, but you will have to check fees/loads of each scheme individually.

http://www.moneycontrol.com/mutual-f...acker/eqind/ab

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