NIPPON INDIA MUTUAL FUND ETF
Reliance Nippon Life Asset Management Limited (RNAM) is one of the largest asset managers with more than 24 years of experience in managing wealth of investors. To cater to the increasing demand for passive management, RNAM offers a variety of Exchange Traded Funds (ETFs) under “Nippon India ETFs”.
Why Equity ETF?
Ease of transaction - Can be easily bought / sold like any other stock on the exchange through terminals spread across the country
Ease of Liquidity - Can be bought / sold anytime during market hours (subject to availability of buyer/seller) at prices prevailing in the market. Thus, investor transacts at real-time prices
Low Cost - Generally less expensive than investing in multiple individual securities or a mutual fund
Other Special Features
• Instant diversification through exposure to a large number of stocks by purchasing as low as 1 unit
• Buying / selling at close to live price and not end-of-day, also ability to put limit orders
• Authorized Participants / Large investors can buy in creation unit size directly from the AMC at Live Prices in creation unit sizes
Nippon India ETF Bank BeES
Investment Objective Nippon India ETF Bank BeES
The investment objective of Nippon India ETF Bank BeES is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty Bank Index. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Positioning – Nippon India ETF Bank BeES
• Nippon India ETF Bank BeES is an Exchange Traded Fund (ETF) listed on NSE & BSE, and invests in stocks of Nifty Bank Index in the same proportion as the underlying Index
• Nippon India ETF Bank BeES is less expensive than investing in individual securities of the Nifty Bank Index.
• It provides an opportunity to investors for passively investing in a well-expanded portfolio of top banks as per free float market capitalization, as approximately represented by Nifty Bank Index
Benefits of investing in Nippon India ETF Bank BeES
Well Defined Portfolio: Nippon India ETF Bank BeES investment strategy & stock selection is clearly defined; it would replicate the Nifty Bank Index & invest only in companies forming the index in the same proportion as the underlying index
Diversification: Buying a single unit currently offers diversification of 12 stocks in the banking sector
Transparency: Nifty Bank Index constituents are made available in public domain on a daily basis by NSE
Liquidity: ETF units are traded on exchanges & can be easily liquidated during trading hours (subject to availability of buyer/Seller). Authorized Participants / Large Investors also have the option of coming to the AMC for procurement/sale of units in creation unit sizes (10,000 units with 1 unit equivalent to 1/100th of Nifty Bank Index)
Margin for trading: Nippon India ETF Bank BeES is accepted as margin for trading on NSE & BSE with applicable haircut
Hedging option available: Nippon India ETF Bank BeES allows one to take exposure to the banking sector with relatively less stock specific risk, as risk gets diversified among basket of stocks
Index track Record: Launched in Sep-2003
Source: NSE & NSE Indices Ltd.
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since RNAM has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; RNAM does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNAM’s views or opinions, which in turn may have been formed on the basis of such data or information.
Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.