with the ongoing mergers in several banks, what are yr views on investments in bank bees? what are the probabilities on return on such investment?

Bank BeES is one of the few Exchange Traded Funds (ETFs) available on the National Stock Exchange.

The functioning of ETFs is similar to open ended mutual funds, but they are passive funds. Their composition is based on a particular index / basket of stocks and is not decided actively by fund managers.

The Bank BeES (Bank Benchmark Exchange Traded Scheme) is based on the CNX Bank Index.

Banking is one sector, which closely follows the economic progress of a country. Thus it is safe to assume that in the long run, Bank BeES will surely be a market performer.

However in short to medium term, the RBI may opt for higher interest rates to combat inflation. Higher interest rates would not only squeeze margins for banks, they would also reduce credit offtake. Thus I am not very bullish on banks for the medium term (6 to 9 months).

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