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. The Bank BeEs comes under the benchmark of Bank Nifty Index. It is almost similar like Nifty Bees, the only difference is it works on Bank Nifty rather than Nifty Index. Here, in this content, you will find the answers of What is Bank BeEs ETF and How to Invest in It.
What is Bank BeEs ETF?
The Bank BeEs 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. The Bank BeEs ETF fund holds all of the twelve stocks of Bank Nifty (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 Bank Bees ETF can easily do it from their Demat account by themselves or by their financial broker. Similar to stocks, Bank BeEs 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 Bank BeEs. 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.