Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
6Activity
0 of .
Results for:
No results containing your search query
P. 1
JUNIOR NIFTY BeES-how to Make Higher Profits-VRK100-06112009

JUNIOR NIFTY BeES-how to Make Higher Profits-VRK100-06112009

Ratings: (0)|Views: 799 |Likes:
This is the author RAMA KRISHNA VADLAMUDI,s 53rd document on SCRIBD in just nine weeks. This article deals with the advantages of Junior Nifty BeES ETF. NIFTY JUNIOR BeES (Nifty Junior Benchmark Exchange Traded Scheme) is a mutual fund product, but it is traded on NSE throughout the trading day like any company’s share. It is an open-ended mutual fund scheme. Like a share, one can buy/sell units of NIFTY JUNIOR BeES on NSE (National Stock Exchange) throughout the trading hours. JUNIOR NIFTY BeES is traded in demat form only. One can buy JUNIOR NIFTY BeES from NSE through one’s broker and the units will be credited to one’s demat account on T+2 basis. If one desires, one can sell the units again through NSE anytime during the trading hours.
This is the author RAMA KRISHNA VADLAMUDI,s 53rd document on SCRIBD in just nine weeks. This article deals with the advantages of Junior Nifty BeES ETF. NIFTY JUNIOR BeES (Nifty Junior Benchmark Exchange Traded Scheme) is a mutual fund product, but it is traded on NSE throughout the trading day like any company’s share. It is an open-ended mutual fund scheme. Like a share, one can buy/sell units of NIFTY JUNIOR BeES on NSE (National Stock Exchange) throughout the trading hours. JUNIOR NIFTY BeES is traded in demat form only. One can buy JUNIOR NIFTY BeES from NSE through one’s broker and the units will be credited to one’s demat account on T+2 basis. If one desires, one can sell the units again through NSE anytime during the trading hours.

More info:

Published by: RamaKrishna Vadlamudi on Nov 06, 2009
Copyright:Attribution Non-commercial No-derivs

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

01/12/2012

pdf

text

original

 
Rama Krishna Vadlamudi, MUMBAI. www.scribd.com/vrk100 Nov. 6, 2009 Please read author’s disclaimer at the end.
Page 1 of 9 
Rama Krishna Vadlamudi November 6th, 2009 
Junior Nifty Bees one-year return 
020406080100120
       1       1       /       5       /       2       0       0       8       1       2       /       5       /       2       0       0       8       1       /       5       /       2       0       0       9       2       /       5       /       2       0       0       9       3       /       5       /       2       0       0       9       4       /       5       /       2       0       0       9       5       /       5       /       2       0       0       9       6       /       5       /       2       0       0       9       7       /       5       /       2       0       0       9       8       /       5       /       2       0       0       9       9       /       5       /       2       0       0       9       1       0       /       5       /       2       0       0       9       1       1       /       5       /       2       0       0       9
    R   s
 
Source: NSE. Data as on November 5, 2009.
In just 11 months, it jumped by 120%! It’s unbelievable, true.
THE BEST OF MY STUFF ON 
Reads 
http://www.scribd.com/vrk100
 
1. Income Tax Slabs 2009-10 for Salaried Class
2 027 
2. Direct Taxes Code Bill 2009
964 
3. Public Provident Fund PPF ac-Little Known Facts
921
5. Good and Services Tax-GST-an introduction
656 
4. Interest Rate Futures-NSE launches IRFs
644 
6. Nifty Bees-Exchange Traded Fund
553 
TOTAL READS CROSSED 12,500! 
 
Rama Krishna Vadlamudi, MUMBAI. www.scribd.com/vrk100 Nov. 6, 2009 Please read author’s disclaimer at the end.
Page 2 of 9 
NIFTY JUNIOR B ES (Nifty Junior Benchmark Exchange Traded Scheme) is a mutual fund product, but it is traded on NSE throughout the trading day like any company’s share. It is an open-ended mutual fund scheme. Like a share, one can buy/sell units of NIFTY JUNIOR 
 
ES on NSE (National Stock Exchange) throughout the trading hours.JUNIOR NIFTY B ES is traded in demat form only. One can buy JUNIOR NIFTY B ES from NSE through one’s broker and the units will be credited to one’s demat account on T+2 basis. If one desires, one can sell the units again through NSE anytime during the trading hours.
Junior Nifty Bees Daily Volumes 
0.00100.00200.00300.00400.00500.00600.00700.00800.00
     1     1     /     5     /     2     0     0     8     1     2     /     5     /     2     0     0     8     1     /     5     /     2     0     0     9     2     /     5     /     2     0     0     9     3     /     5     /     2     0     0     9     4     /     5     /     2     0     0     9     5     /     5     /     2     0     0     9     6     /     5     /     2     0     0     9     7     /     5     /     2     0     0     9     8     /     5     /     2     0     0     9     9     /     5     /     2     0     0     9     1     0     /     5     /     2     0     0     9     1     1     /     5     /     2     0     0     9
   R  s   l  a   k   h  s
 
Source: NSE. Data as on November 5, 2009. One-year volume chart.
What is an Exchange-Traded Fund? 
Before we plunge right into Junior Nifty Bees, let us examine a little about ETFs-
An ETF is basically an index mutual fund scheme with a littledifference
The main difference between an index fund and an ETF is this: an ETFis always listed and traded on an exchange; whereas an index fundhas to be bought/sold directly with the particular Mutual Fundcompany or through a mutual fund agent/distributor
An ETF is linked to a benchmark index like any index fund
An ETF can be bought and sold through an exchange like any share
 
Rama Krishna Vadlamudi, MUMBAI. www.scribd.com/vrk100 Nov. 6, 2009 Please read author’s disclaimer at the end.
Page 3 of 9 
To buy an ETF, one requires a demat account and a trading accountwith a broker to buy/sell on the particular exchange where the ETF islisted/traded; whereas for buying an index fund, investor does notrequire a demat account and she can directly approach the mutualfund for buying or selling the index fund units
What are the Components of CNX Junior Nifty? 
Junior Nifty BeES ETF is based on CNX Nifty Junior Index of the NSE. There are 50stocks in it. It can be said that they are the most liquid stocks after those 50 stocks thatare part of the benchmark S&P CXN Nifty of the NSE, Mumbai, India. NSE selects thesefifty stocks in CNX Nifty Junior based on market capitalization, volumes and liquidity.The stocks that appear in Nifty Junior will never appear in Nifty and vice versa. Togetherthese 100 stocks in Nifty and Junior Nifty indices are said to be the most liquid stocks inIndia. Of course, NSE constantly changes the composition removing inactive stockswhile including actively traded stocks in the index. And there are fair chances that NiftyJunior stocks move up the chain and get included in the main Nifty index. The tradedvalue for the last six months of all Junior Nifty stocks is approximately 16% of the tradedvalue of all stocks on the NSE. Impact cost for CNX Nifty Junior for a portfolio size ofRs.50 lakhs is 0.26 per cent.
Salient Features of Junior Nifty BeES 
One unit of Junior NIFTY BeES is equal to one-hundredth of the value ofCNX Nifty Junior Index. On 5.11.09, Junior Nifty index had closed at9,391; whereas, Junior NIFTY BeES was quoting at Rs 94.53 on day’sclosing on NSE. The small difference (technically called tracking error)between the underlying Nifty Junior index and Junior NIFTY BeES is dueto the supply and demand factors of Junior NIFTY BeES on NSE. On5.11.09, its day’s high was Rs 94.60 and day’s low was Rs 92.05. Duringthe trading hours, the price of Junior NIFTY BeES will fluctuate in tunewith the movement of Nifty Junior index.
If the NIFTY Junior Index goes up to 13,000 in the next six months, thevalue of one unit of NIFTY BeES will go up to Rs 13 or if the Junior NiftyIndex retraces to 8,000, then the value of one unit of Junior NIFTY BeESwill be realigned to Rs 80 in tune with the movement of the market
The structure of Junior Nifty BeES is such that it does not hurt long-terminvestors from the inflow and outflow of short-term investors. This isbecause the Fund does not bear extra transaction cost when buying / selling due to frequent subscriptions and redemptions.

Activity (6)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
RamaKrishna Vadlamudi added this note
Goldman Sachs took over Benchmark Mutual Fund and now it's called Goldman Sachs Mutual Fund. Nifty Junior BeES' official name is Goldman Sachs Nifty Junior Exchange Traded Scheme
nishitpatel2783 liked this
vumc liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->