Nippon India ETF Bank BeES is an open ended index scheme which is listed on the Exchange in the form of an Exchange Traded Fund (ETF). It is offered by Nippon Life Asset Management Limited. NAM was formerly known as Nippon India Capital Asset Management Limited. It is one of the biggest and reliable asset management companies (AMCs) in India. It offers a number of mutual funds and schemes which are suitable for investors of different investment objectives.
The main investment objective of the Nippon India ETF Bank BeES is to facilitate the provision of returns that are closely correspondent to the total returns of the securities as represented by the Nifty Bank Index. It is suitable for long-term capital appreciation. Under this scheme, the investments are made in securities which are covered under the Nifty Bank Index. However, the achievement of the scheme's investment objectives is not assured or guaranteed.
The key features of the Nippon India ETF Bank BeES can be summed up as follows:
Type of scheme | An open ended index scheme which is listed as an Exchange Traded Fund (ETF) on the Exchange, tracking the Nifty Bank Index |
Plans available | This scheme offers the Growth option only. However, the trustee might declare a dividend at times on the basis of the Dividend Policy of the scheme (discussed below). |
Risk | High |
Systematic Investment Plan (SIP) | Not available |
Systematic Transfer Plan (STP) | Not available |
Systematic Withdrawal Plan (SWP) | Not available |
Minimum application amount |
|
Minimum additional investment | Not applicable |
Minimum instalment for Systematic Investment Plan (SIP) | Not Applicable |
Minimum instalment for Systematic Withdrawal Plan (SWP) | Not Applicable |
Entry Load | Not Applicable |
Exit Load | Nil |
Type of security | Indicative Allocations(percentage of total assets) | Risk Profile | |
Minimum | Maximum | High/Medium/Low | |
Securities which are covered under the Nifty Bank Index | 95% | 100% | Medium to High |
Money Market Instruments (including cash and cash equivalents, and CBLO), provided the maturity does not exceed 91 days | 0% | 5% | Low to Medium |
The following persons are eligible to invest and subscribe to units of the Nippon India ETF Bank BeES:
The Net Asset Value (NAV) of each unit of the scheme is calculated by using a simple formula. The result we get on dividing the net assets of the scheme by the total number of units outstanding on the date of valuation is the Net Asset Value or NAV of each unit under the scheme. This computation is done on the basis of the norms of valuation stated in Schedule VIII of the Securities and Exchange Board of India (Mutual Funds) Regulations.
The formula used for the valuation of Net Asset Value (NAV) of each unit under the Nippon India ETF Bank BeES scheme can be drafted as follows:
NAV (Rs.) = (Market or Fair Value of Scheme Investments + Current Assets including Accrued Income - Current Liabilities and Provisions including accrued expenses) / Number of Units outstanding under the scheme on the day of valuation.
The NAV of the scheme is usually calculated up to 4 decimal places. The Net Asset Value (NAV) is computed and announced by the end of every working day. The NAV of the scheme has to be published in at least 2 daily newspapers on business days. The NAV of the scheme should also be reflected on the website of the Mutual Fund (www.Nippon Indiamutual.com) as well as the website of AMFI (www.amfiindia.com) by 9:00 p.m. of every business day. In case of a delay in the publication of the Net Asset Value (NAV), the asset management company (AMC) will be liable to explain in writing the reason for the delay to the AMFI on the following day. The mutual fund will also be liable to issue a press release in case the NAVs are not published by the start of the business hours on the following day due to some reason. The press release must also have the clear message of when the NAVs will be published by the mutual fund.
The benchmark of the Nippon India ETF Bank BeES scheme is Nifty Bank Index.
The investments under the Nippon India ETF Bank BeES scheme is managed by Ms. Payal Wadhwa Kaipunjal. She has a Bachelor's degree in Commerce (B.Com) along with an MBA degree, a PGDM degree, and a Financial Risk Manager (FRM) Program degree from The Global Association of Risk Professionals (GARP). She has been in charge of managing funds in Nippon India Nippon Life Asset Management Limited since 5 November 2016.
On the basis of the Trust Deed which is read with the Securities and Exchange Board of India (Mutual Fund) Regulations, certain restrictions are set. These restrictions are applicable at the time of investing in such mutual fund schemes. Some of the restrictions are as follows:
A declaration for the distribution of dividend might be made by the trustee to the unitholders under the scheme. However, the distribution of dividend is subject to the availability of surplus which is distributable. The actual distribution of dividends and the frequency of distribution will be completely at the discretion of the trustee. The dividends will be paid to the unitholders whose names appear on the Register of Unitholders on the date of record as per the scheme. The unitholders will receive the declared dividends within 30 days from the date of declaration of the dividend. However, taxes will be deducted at source, wherever applicable. The prescribed requirements in the listing agreement for the declaration of dividend will be followed by the scheme.
Nevertheless, it should be kept in mind that there is no guarantee or assurance in terms of the rate of dividend distribution. The regularity of payment of dividend is also not assured by the scheme.
The Nippon India ETF Bank BeES is offered by Nippon India Mutual Fund (RMF). Nippon India Mutual Fund (RMF) is one of India's top AMCs with an Average Assets Under Management (AAUM) of Rs.2,40,445.37 crore (For the first quarter of FY-2018) and 83.99 lakh folios (as on 30 June 2018). It is a part of Anil Dhirubhai Ambani (ADA) Group. RMF offers a plethora of products which is suitable for the varying investment needs of every type of investors. It is present in over 160 cities all over the country. With a bunch of innovative products on offer and a supportive customer service, the Nippon India Mutual Funds is one of the safest and most convenient options to invest in.
GST rate of 18% applicable for all financial services effective July 1, 2017.
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