There are many people who are troubled by the uncertainty of the market. They wanted to invest for the long term, but fear that their investment might plummet to zero after investing. If this is the case with you too, then this article is specially made for you.
After going through this article, you will never again be afraid of long term investment and you will be able to grow your money and build good corpus at the end.
You can build wealth in the long run, but the question which arises is, which stock is the correct one to invest in so that you should not lose your money and earn profit too. For this purpose only we will focus on nifty , the index which represents the top 50 Indian Companies.
Introducing Nifty Bees:
You can invest in Nifty 50 by two means, one is Nifty Bees and other one is Nifty Index Funds. In this article we will explore which one among them is a better option to invest, even with a small amount.
Nifty Bees:
Nifty Bees (Benchmark Exchange Traded Scheme) a combination of share and mutual fund is the first Exchange Traded Fund (ETF) in India that mimics the Nifty 50 index. This means that whatever returns Nifty 50 generates, Nifty Bees will provide a similar return to the investors. It’s like trading a single stock on the exchange, where the price fluctuates just like any other company’s stock.
To invest in Nifty Bees, just like you would need a demat account to buy any stock in the stock market, you need to have a demat account.
Now, Let’s see how you can invest in nifty bees.
On your selected trading platform, like zerodha, groww etc., you can select the nifty bees (currently highest traded as per volume is Nippon India Nifty Bees). You can buy one unit of Nifty bees at the current market price.
Features and advantages of Nifty BeeS
1. Risk-free : Investors get exposure to the top 50 companies of India, by investing in Nifty Bees. By investing in many individual securities through nifty bees, not only does your portfolio get diversified , the risk of individual stock’s performance affecting overall returns also gets reduced.
5. High Liquidity: As a high liquid asset, you can sell it and withdraw your money whenever you need it, without any hassle at any time.
Disadvantages of Nifty BeeS
1. Limited Return : Nifty bees simply mirror the nifty 50 index, return generated by it cannot be more than the index itself.
Key points to consider before investing
1. Expense Ratio and Returns
The expense ratio for Nifty index funds is generally higher than that of Nifty Bees.
Whereas, in comparison to, Nifty Bees has consistently outperformed the Nifty index funds, with higher returns and a lower expense ratio of just 0.04%.
2. Before investing , it is important to have a well-thought-out strategy. Here’s a simple approach that can help you maximize your returns:
- Based on your financial situation, decide your investment capacity.
- Invest a fixed amount at regular intervals, regardless of the market conditions.
- Use the power of average. invest at different price levels, to create a favourable averages cost for your investment.
Following some simple methods, you can outperform the market, regardless of the ups and downs. Plan for long term investment and goals. By following and making investment advice with thoughtful research, you can build a substantial corpus without the fear of market volatility. Unlock the power of guaranteed returns and secure your financial future with Nifty Bees.
