Nifty BeES and Gold BeES are the ETFs traded in exchange funds. Trading them is very simple and allows you to trade at any time you want. These provide flexibility and can be purchased at the bundle of units. A cost-effective trading opportunity to participate in the stock exchange activity.
Investing in an ETF is a simple process and you must buy a bundle of assets not as single stocks and trade during market hours. This can lower your risk and have potential exposure to the blue chip companies.
Difference between Nifty BeES and Gold BeES
The main differences between Nifty BeES and Gold BeES are as follows:
| S.No | Aspect | Nifty BeES | Gold BeES |
|---|---|---|---|
|
1 |
Definition |
An exchange-traded fund (ETF) that tracks the first 50 blue chip companies Indian stocks. |
An ETF that always helps to track real-time gold prices.
|
|
2 |
Aim |
Aims to mirror the returns of the Nifty 50 index. |
Provides exposure to the precious metal gold. |
|
3 |
Usage |
Preferred for trading due to easy buying/selling and conversion of cash. |
Your portfolio may have a variety of stocks or assets during market changes. |
|
4 |
Correlation |
Not directly correlated with gold; influenced by stock market performance. |
Exhibits a negative correlation with Nifty BeEs. |
|
5 |
Security |
Not a barrier against inflation or currency fluctuations. |
Can act as a barrier against inflation and currency risks. |
|
6 |
Inflation |
In general, connections are negative. When inflation rises, the Nifty BeES may encounter issues due to increased prices for businesses.
|
Positively connected. Gold is frequently used as a protection against inflation, keeping its value stable during times of economic turmoil. Investors look to gold as a haven asset. |
|
7 |
Economic Crisis |
Negatively connected. During economic downturns, investors may sell Nifty BeES and seek safety in Gold BeES. |
Negatively connected. During economic downturns, investors may sell Nifty BeES and seek safety in Gold BeES. |
Outline of Nifty BeES:
- Launch Date: December 28, 2001
- Managed By: Nippon India Mutual Fund
- Units: One unit equals 1/10th of the S&P CNX Nifty index value and 1/100th of the Nifty 50 index value.
- NAV (Net Asset Value): The Net Asset Value is calculated on the National Stock Exchange.
- Buying and Selling: A cost-effective and streamlined process of buying and selling shares.
Outline of Gold BeES:
- Launch Date: March 17, 2006
- Managed By: Nippon India Mutual Fund
- Units: Traded in units similar to stocks
- NAV: Reflects the value of the fund assets per unit
- Buying and Selling: Similar to other regular stocks on the stock exchange
Choosing Between Nifty BeES and Gold BeES
| S.No | Aspect | Feature |
|---|---|---|
|
1 |
Implications |
A real-time tool that combines theoretical knowledge with practice |
|
2 |
Correlations |
Impacts the market and helps traders make informed decisions |
|
3 |
Bear Market |
Buy Gold BeES by selling Nifty BeES when the market is down |
|
4 |
Bullish Market |
Buy Nifty BeES to accumulate wealth when the market is optimistic |
|
5 |
Benefits |
|
Performance of Nifty BeEs and Gold BeEs:
| Nifty BeES | 1 Y | 3 Y | 5 Y | All |
|---|---|---|---|---|
|
Fund Returns |
24.9% |
15.4% |
15.2% |
15.7% |
|
Category Average |
38.1% |
18.0% |
16.7% |
- |
|
Rank with Category |
91 |
51 |
44 |
- |
| Gold BeES | 1 Y | 3 Y | 5 Y | All |
|---|---|---|---|---|
|
Fund Returns |
21.7% |
13.7% |
17.4% |
11.6% |
|
Category Average |
38.1% |
18.0% |
16.7% |
- |
|
Rank with Category |
18 |
17 |
11 |
- |
Risk Analysis of Nifty BeES and Gold BeES:
| Fundamentals | Nifty BeES Ratio | Gold BeES Ratio |
|---|---|---|
|
Expense ratio |
0.04% |
0.79% |
|
PE ratio |
22.37 |
NA |
|
PB ratio |
3.63 |
NA |
Conclusion
In conclusion, if you want to invest in the top 50 blue-chip companies with a small investment for good returns, this is a great opportunity. Gold ETFs are similar to Gold BeES tracks the real-time price of gold, while Nifty BeES represents top companies in the stock market. It’s beginner-friendly with low risk. For better returns with a low-risk portfolio, you can choose Nifty BeES and Gold BeES.