Earlier I’ve discussed one of the BeEs, Nifty BeEs. Today the focus light will be on the Bank BeEs. Exchange-Traded Fund (ETF) is a popular investment under the Mutual Fund. This ETF comes under the benchmark of the Bank Nifty Index. It is almost similar to Nifty Bees, the only difference is it works on Bank Nifty rather than Nifty Index. Here, in this content, you will find the answers to What is Bank BeEs ETF and How to Invest in It.
What is Bank BeEs ETF?
This is a Bank Exchange Traded Fund of Goldman Sachs. One of the main objectives of the Fund is to correspond total returns of the Bank Nifty Index. This exchange-traded fund holds all of the twelve stocks of Bank Nifty (a similar portion in the Bank Nifty Index). Investors who want to invest in the top banks and wish to diversify his/her portfolio can do so by investing in the Bank BeEs ETF.
The Fund was launched in the year 2004, June 4. The fund has generated, since inception, a CAGR return of 20.83% in comparison to 19.52% of the Bank Nifty Index.
How to Invest in Bank Bees ETF?
Any investors who wish to buy or sell this Bank ETF can easily do it from their Demat account by themselves or by their financial broker. Similar to stocks, this ETF can be bought at any time, at the market price during the trading day. The buying price is quite minimal. So, in the case of buying stock, brokerage fees attract.
Key Facts of Bank BeEs
- Benchmark Index: Bank Nifty Index
- BSE Code: 590106
- NSE Symbol: Bankbees
- ISIN: INF732E01078
- Fund Type: It is an Open Ended Index Scheme, listed in the exchange in the form of ETF.
- Pricing: Approximately 1/10th of Bank Nifty Index
- Investment Objective: As represented by the Bank Nifty 50 Index, it replicates the total return of the securities.
- Managers: Goldman Sachs Asset Management Ltd
- Taxation Treatment: Equity
- Minimum Lot (Exchange): One unit per share
- Minimum Lot (Directly with Fund): 1000 units
- Entry/Exit Load: Nil
- Maximum Expense Ratio: 0.80% Annualized
Besides Nifty and Bank BeEs, there are others BeEs available in the Indian financial market such as Liquid BeEs, Gold BeEs, etc. Investors get exposure to the top 12 capitalized Indian Banks by investing in this ETF. So, basically, the Bank BeEs (in the Too Indian Banks) makes investors free from worries of finding the right bank to invest in. The non-performing bank will automatically be replaced with the performing one.