Nippon India Nifty 50 Bees ETF

NIFTYBEESETF

184.230.32 (-0.17%)

Tracking Nifty Index

Investment Checklist

NAV

The net asset value (NAV) of an ETF is based on the current prices of the stocks/assets in the fund and an actual accounting of the total cash in the fund at the time of calculation. Market price can be different from real time NAV due to late market activity and both tend to converge periodically. A market price close to real time NAV is much better for investment!

Current price is close to the real time NAV

Expense Ratio

ETFs charge their shareholders an expense ratio to cover the fund’s operating expenses, which is expressed as a percentage of the fund’s average net assets. This directly reduces the fund’s returns to its shareholders, and, therefore, the value of the investment. Lower is always better!

Less expense ratio implies better returns over the long term

Tracking Error

Tracking error is the difference between the performance of the ETF and that of the underlying benchmark its tracking. Its an important metric for investors who want to replicate an indexs performance by investing in the ETF. The lower the tracking error, the better is the ETFs performance aligned with the investors expectations

ETF has been able to closely match its benchmarks returns

Return vs FD Rates

Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

ETF has been generating better price return than bank FD

Entry Point

High demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then its considered to be in the overbought zone, which is not a good time to buy the ETF

Not a good time to invest, ETF is in overbought zone

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