Nifty Bees Etf | Investors buy Nifty Bees amidst geopoltical tension and sharp correction – The Economic Times

Nifty Bees, an exchange traded fund (ETF) that mimics the broad-based Nifty 50 index, saw the highest volume of Rs 350 crore amid a 815 point correction in the Nifty 50 on geopolitical concerns on Thursday. Previously in December 2021, the highest volume clocked was Rs 205 crore.

The ETF managed by Nippon India Asset Management has assets of Rs 5846 crore.

In the same session, the total Nifty50 ETF volume was Rs 541 crore, with the balance coming from ETFs like SBI, ICICI, and Kotak among others.

Analysts believe whenever there is a big dip, investors unsure about which stock to buy end up buying broad based indices. Simplicity of the product, low expense ratio, and a large number of new demat accounts opened since the pandemic started also helped push trading volumes.

While individual stocks continue to top the charts in daily volumes in India, globally ETFs are the highest traded securities. SPDR S&P 500 that mimics the S&P 500 is the most actively traded security, clocking volumes of $25-30 billion daily.

Financial planners believe first-time investors could start their equity allocation with a plain vanilla product like the Nifty 50 ETF. This is a low cost product with an expense ratio of just 5 basis points, giving access to top 50 Indian companies that account for 60% of the total market capitalisation.