Nippon India ETF Junior BeES can prove to be a good option in terms of returns in ETFs. Information about this ETF from returns to NAV is also given.
In the last few years, the trend of investing in exchange traded funds has increased rapidly. Nippon India ETF Junior BeES is one such fund which has given good returns to investors over the years. But before knowing about this fund, let us know what are Exchange Traded Funds? ETFs are baskets that include securities, shares and bonds. Like stocks, ETF shares are traded during the trading session. There are several types of ETFs depending on the funds. Investing in ETFs has increased in recent years. There are many reasons for this as well. ETFs are based on passive benchmarks like Nifty and Sensex.
Other details of these funds including expense ratio
The Net Asset Value (NAV) of this fund as on June 11 is Rs 410.24. This fund was started in February 2003 and the expense ratio is 0.15 per cent. The size of this fund is currently around Rs 1,769 crore.
The Nippon India ETF Junior Seed ETF gives a return of 58.81 per cent in the last one year. In the last one year this return is 11.03 percent, in 5 years it has got 15.55 percent return.
Why should market first-timers invest in ETFs?
Nippon India ETF Junior BeES is a passive fund. Passive Fund means that this fund simply follows its index. No stocks or sectors are selected here. In this fund the advantages of both index and stocks are covered as it is a mutual fund which is listed on the exchange.
Thus, it reduces the risk in many ways for the investors entering the market. There is no hassle of selecting any particular stock or sector in this. One of the most important features of ETFs is that the management fees are very low. In terms of returns, midcaps usually have higher returns than large cap and blue chips companies in the long run.
What is the difference between Nifty ETF and Nifty India ETF Junior Seed?
Nippon India ETF Junior BeES was launched to give investors more fund options. This fund was launched in 2003. Whereas, Nifty ETF was already launched in 2001. Nippon Junior BeES invests in the next 50 companies of Nifty-50. In this way, investors are able to invest in those stocks, which can become a part of Nifty 50 in future.
Apart from this, if we talk about the sectors of both the funds, then there is a lot of difference between them. In a way, these two funds complement each other and give an opportunity to the investor to invest in top 100 companies by market cap.
What should be the share of this investment in the investor’s portfolio?
Generally, most financial experts say that every investor should divide his portfolio into two parts. The first part should be the core part. Here the investor should take passive funds so that market returns can be found and many types of risks can be removed. In the remaining part, those investments should be kept on which the investor can get better returns. In the core portion, the investor should invest 60-70 per cent of the portfolio. Now in this core part also the portfolio should be divided into large, mid and small caps.
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