Nippon India ETF Nifty 50 BeES is an exchange-traded fund (ETF) managed by Nippon India Mutual Fund. Its primary objective is to provide investment returns that closely correspond to the total returns of the securities represented by the Nifty 50 Index, before expenses.
Key Details:
- Investment Strategy: The fund employs a passive investment approach, aiming to replicate the performance of the Nifty 50 Total Return Index (TRI) by investing in the securities constituting the Nifty 50 Index.
- Expense Ratio: As of February 21, 2025, the total expense ratio of the fund is 0.04%.
- Assets Under Management (AUM): The fund’s AUM stands at ₹38,966.12 crore as of February 21, 2025.
- Trading Information: The ETF is listed on the National Stock Exchange (NSE) under the ticker symbol “NIFTYBEES.” Investors can buy or sell units of the ETF through their demat accounts during regular trading hours.
- Minimum Investment: Investors can purchase units on the exchange in multiples of 1 unit. For direct transactions with the mutual fund, the minimum creation unit size is 50,000 units and multiples of 1 unit thereafter.
- Risk Profile: The fund is suitable for investors seeking long-term capital growth by investing in a diversified portfolio of the top 50 companies in India, as represented by the Nifty 50 Index. However, as with all equity investments, it carries market risks, and investors should assess their risk tolerance before investing.
Nippon India ETF Nifty 50 BeES Share Price
As of February 21, 2025, the Nippon India ETF Nifty 50 BeES is trading at ₹255.53 per unit.
This exchange-traded fund (ETF) aims to replicate the performance of the Nifty 50 Index, providing investors with exposure to India’s top 50 companies by market capitalization.
Who is the Fund Manager of Nippon India ETF Nifty 50 BeES
As of December 2023, the Nippon India ETF Nifty 50 BeES is managed by Mr. Himanshu Mange. He oversees multiple open-ended schemes within the Nippon India Mutual Fund portfolio.
Nippon India ETF Nifty 50 BeES Review
Nippon India ETF Nifty 50 BeES is a well-established exchange-traded fund (ETF) that aims to replicate the performance of the Nifty 50 Index, providing investors with exposure to India’s top 50 companies by market capitalization.
Performance and Returns:
- Net Asset Value (NAV): As of January 23, 2025, the NAV stands at ₹258.80.
- Historical Returns: Since its inception over 23 years ago, the fund has delivered an average annual return of 15.42%.
Portfolio Composition:
- Asset Allocation: The fund maintains a high equity exposure, with 99.87% invested in equities as of January 31, 2025.
- Top Holdings: Major constituents include HDFC Bank (12.22%), ICICI Bank (8.36%), and Reliance Industries (8.13%).
- Sector Allocation: The portfolio is diversified across sectors, with significant allocations to Financials (33.02%), Technology (13.97%), and Energy (12.31%).
Expense Ratio and Tracking Efficiency:
- Expense Ratio: The fund offers a competitive expense ratio of 0.04% as of February 21, 2025, making it a cost-effective option for investors.
- Tracking Error: With a tracking error of 0.03, the ETF closely mirrors the performance of the Nifty 50 Index.
Risk Considerations:
- Risk Profile: The fund is categorized under the “Very High” riskometer, indicating a higher risk-reward potential.
- Market Volatility: As an equity-focused ETF, its performance is subject to market fluctuations, and investors should be prepared for potential short-term volatility.
Investor Suitability:
This ETF is suitable for investors seeking long-term capital appreciation through exposure to a diversified portfolio of large-cap Indian equities. Its low expense ratio and close tracking of the Nifty 50 Index make it an attractive option for cost-conscious investors. However, due to its high-risk profile, it is recommended for those with a higher risk tolerance and a long-term investment horizon.
Nippon India ETF Nifty 50 BeES Top Holdings
As of January 31, 2025, the top holdings of the Nippon India ETF Nifty 50 BeES are:
- HDFC Bank Ltd. – 12.22%
- ICICI Bank Ltd. – 8.36%
- Reliance Industries Ltd. – 8.13%
- Infosys Ltd. – 7.36%
- Housing Development Finance Corporation Ltd. – 6.61%
- Tata Consultancy Services Ltd. – 4.36%
- ITC Ltd. – 3.75%
- Larsen & Toubro Ltd. – 3.47%
- Kotak Mahindra Bank Ltd. – 3.12%
- Axis Bank Ltd. – 2.95%
These holdings collectively represent a significant portion of the ETF’s portfolio, reflecting its strategy to mirror the Nifty 50 Index. The fund maintains a diversified exposure across various sectors, with a notable emphasis on the financial sector.
Nippon India ETF Nifty 50 BeES Returns
As of November 30, 2024, the performance of Nippon India ETF Nifty 50 BeES is as follows:
| Period | Returns (CAGR %) | Benchmark (Nifty 50 TRI) (%) |
| 1 Year | 21.17 | 21.27 |
| 3 Years | 13.70 | 13.76 |
| 5 Years | 16.08 | 16.21 |
| Since Inception* | 15.94 | 16.30 |
These figures indicate that the ETF has closely tracked its benchmark, the Nifty 50 Total Return Index (TRI), across various time frames. For instance, over a 5-year period, the ETF delivered a Compound Annual Growth Rate (CAGR) of 16.08%, while the benchmark returned 16.21%.
Strengths of Nippon India ETF Nifty 50 BeES
- Low Expense Ratio – The fund has an expense ratio of just 0.04%, making it a cost-effective option for investors compared to actively managed mutual funds.
- Diversification – The ETF provides exposure to 50 blue-chip companies across various sectors, reducing company-specific risk.
- Market Liquidity – Being an ETF, it is traded on NSE & BSE, allowing investors to buy and sell units anytime during market hours.
- Close Tracking of Nifty 50 Index – With a low tracking error (~0.03%), the fund efficiently replicates the Nifty 50 TRI performance.
- Long-Term Growth Potential – Historically, the Nifty 50 Index has delivered strong returns (15-16% CAGR) over long-term periods.
- Transparency – The fund’s portfolio composition is publicly available daily, allowing for better tracking and informed decisions.
- No Fund Manager Bias – Since it follows a passive investment strategy, the ETF eliminates fund manager biases that can affect actively managed funds.
Risks of Nippon India ETF Nifty 50 BeES
- Market Risk – Since it is 100% equity-based, the ETF is highly sensitive to market fluctuations and economic downturns.
- Sector Concentration – Financial and IT sectors dominate the portfolio, increasing risk if these sectors underperform.
- Liquidity Risk on Exchange – Although ETFs are traded on stock exchanges, low trading volume may lead to higher bid-ask spreads affecting liquidity.
- No Active Management – Unlike actively managed funds, this ETF cannot adjust holdings based on market conditions to reduce downside risks.
- Tracking Error – Although low, some deviation from the Nifty 50 Index performance may occur due to transaction costs and fees.
- Dividend Reinvestment – Unlike direct stock holdings, dividends received from companies are not paid out directly to investors but are reinvested within the ETF.
Who Should Invest?
- Ideal for long-term investors seeking passive exposure to India’s top 50 companies.
- Best suited for cost-conscious investors who prefer a low-cost alternative to actively managed large-cap funds.
- Not suitable for short-term traders looking for quick gains due to market fluctuations.
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