Make a stock portfolio with safe high return ETF nifty bees. Best stocks are kept, worst are kicked out of 20 automatically. Nifty bees meaning given.
Investing in mutual funds or ETF investment is correct! Which gives the highest returns and which is safer. Why you should select a nifty bees ETF over mutual funds! How to invest in etf stocks? All these queries are explained here in very easy language, please read the full content.
Mutual funds LIC ETF Nifty Bees meaning which is better
ETF meaning and mutual fund meaning explained below. Lic is explained in the bottom.
What is an ETF and how does it work?
The full form of ETF is Exchange Traded Funds. ETFs function similar to stocks but are not stocks. Etios are SEC registered companies westers invest their money in a fund that invests in stock, bonds, commodities etc. Here investors receive an interest in the fund and it is considered less risky than stocks. To cut off risk invest in etf bees which is also explained in this blog.
What is Mutual funds in simple words?
SEBI regulates Mutual Funds in India. Investors buy some part of shares in a fund, in simple words investors buy some percentage share of a particular company and become owners of a particular percentage. Money invested in securities like stocks, bonds and short term debt.
ETF or mutual funds which is safer?
Although mutual funds are considered less risky in the stock market as they are long term investments. Nothing looks safe when we see stocks like yes bank whose performance has decreased in the long term. If you would have invested in this type of stocks for 10 to 15 years then you may face a big loss as some investors faced. Although index funding is also risky, here the role comes for nifty 50 bees and nifty 20 as they are definitely more safer. ETF 20s is the safest way to invest in stock markets.
ETF or mutual funds which is more profitable?
ETF provides more tax advantages as investors only pay capital gain taxes while selling their shares. Index etfs have 0.44 average annual fees whereas index mutuals have 0.88% fee. You can try a nifty bees calculator to calculate the profit returns in 10 years. Nifty junior bees is also attracting people. Nifty bees return is around 15% every year in long run. You should check nifty it bees share price chart history for better idea.
Why should I invest in ETFs over mutual funds?
ETF index is a good option as it has nifty 50 and nifty 20 top 50 and top 20 companies. Through etf you can invest in a group of top 20 companies. If any single company performs badly it will be replaced by another company and kicked out of top 20 or top 50 companies.
The risk ends here as you invest in a group not on a single company. Nifty bees share price in long run becomes massive due to the best company in top 20 or top 50. If possible find stock market class near you to understand the fundamental basics.
ETF Nifty Bees meaning
It also comes under index funding but here investors don’t invest in a particular fund, stock or company instead invests in a group. ETF bees 20 is a group of top 20 stocks/companies and whoever performs the worst kicks outside top 20 and a good performing asset which was sitting outside 20 comes inside top 20, this makes it safer. You won’t lose any money here as you haven’t invested in any single company instead your money is being invested in a group.
To invest directly in an index you have to invest in nifty bees 20 or 50. Index funds are different from index. In an index fund you invest in a particular stock whereas in an index you invest in a group for 20 or 50 stocks. Index fund is more profitable than index but index is more safer than index funds.
For example if you invested 10 years ago in yes bank in index funds you may lose a lot of money. If you invested in nifty bees 20 or 50 which are groups and yes bank might be part of nifty 50 then whenever yes bank outperforms it would be kicked out of nifty bees and other ranking stock replaces it thus you don’t lose any money in index.
| Expense ratio annual commision | Exit load | Money loose probability | Company bankruptcy risk | |
| Mutual funds | 0.5% to 2.5% | 1% | Yes | Yes |
| Nifty bees | 0.05% | No | No | No |
| Index fund | 0.02% | No | Yes | Yes |
Should I invest in LIC RD ppf etc
LIC hardly gives 7% returns and inflation rate is over 7% so it may not be a wise decision. Inflation means continuously growing expenses for example if you pay around Rs 1 lakh for medical care in the next few years you have to pay around Rs 1 lakh 7 thousand for the same.
So, the return should be more than inflation. FD, RD, PPF all are secure but should be considered as saving schemes not investments as they give very low returns. However, it is good to invest in these for 1 to 2 or 3 years as there is no fluctuation but for 5 years to 15 or 20 years you must go with sip.
Conclusion – Now you know what is nifty bees meaning and why it is a good option over mutual funds and lic etc.
