Nippon India ETF Nifty BeES Vs UTI Nifty Index Fund : Which Is Better?


Why Index ETF? Why Nifty BeES?

Nippon India ETF Nifty BeES and UTI Nifty Index Fund are the investments of indices. To buy all the stocks to invest in an index or indices is very expensive and hard. Goldman Sacs started cheaper investment in the form of BeES. The funds are of two types. They are:a

  • Actively managed funds 
  • Passively managed funds (Index funds)

It is always ideal to have a diversified portfolio with different types of investments. These investments help you reach your financial goals. One can earn passive income or make their money do the work by investing in either of these, with lower risk.

Nippon India ETF Nifty BeES:

Bear market vs bull market

It was previously known as Reliance Nifty BeES. Nippon India ETF Nifty BeES provides the investors with returns before any costs. The returns of the investment are in close correlation with the profits of the Securities, as shown in the Nifty 50(National Stock Exchange Fifty). It does not give the guarantee that the returns will be achieved as mentioned. The top holdings of the Nippon India ETF Nifty BeES are Reliance Industries Limited, HDFC Bank Limited, Infosys, ICICI Bank Limited, Kotak Mahindra Bank Limited, ITC Limited, etc.  

An ETF is the Exchange Traded Fund, which is similar to a stock. It is different from mutual funds as it trades once a day and the prices fluctuate. Nippon ETF is an industry ETF. The pice of it was one by a tenth of the Nifty 50. It is now equal to one by hundredth of the Nifty 50. Nippon India ETF Nifty BeES has a high volume compared to the other. The difference between buying and selling is lesser and comparatively easier to sell.

NIFTY investing

The volume of Nippon India ETF Nifty BeEs is forty-seven lakhs. The volume of SBI-ETF Nifty 50 is ten lakhs, and that of ICICI Prudential Nifty ETF is around two lakhs. All the data is as reported on 9th April 2020. Visibly the volume of Nippon India is higher, and thus it is easier to sell. Exit load does not exist like mutual funds, i.e., the exit load is zero per cent. It provides the option of selling at any time. It is trade-able in the market hours that makes it attractive.

How To Invest In Nippon India ETF Nifty BeES?

You need to have a trading account like a Demat account. You can invest in this whenever the market crashes or bear market prevails. The money that you invest in this gets classified in the top fifty companies. It is a low-risk investment and ideal for middle-class investors. Go to the official website of NSE (National Stock Exchange) and look at the details of the Nifty 50.

Select the option saying ” ETF listed in India”, and all the companies are visible. Copy the Nippon India and add it to the watch list in the trading platform. Give the details of the price you will invest in and buy it. You can easily invest in the banks ETF Nifty 50 as they provide you with apps.


UTI Nifty Index Fund:

 UTI Mutual Fund offers the Unit Trust of India Nifty Index Fund. It follows the composition of the Nifty 50. The turnover in it is similar to those of Nifty 50, and The UTI Nifty Index Fund has given returns of 11.08 per cent of return since the time of its launch. It is a passively managed fund, and the expenses are low. One can invest a minimum lumpsum amount of five-thousand-rupees and an additional investment of five-hundred.

They launched it on 6th March 2000 and have an average risk grade. The exit load is zero per cent. It is possible to buy and sell the funds at any time. UTI Nifty Index fund is a passively managed fund. It is ideal for you to choose the index fund if you do not know much about Investments. It is also ideal for people with no knowledge about choosing companies. You can invest the money and stop worrying about it. The returns from this are more than returns from several other investments.

UTI Nifty Index Fund

How To Invest In UTI Nifty Index Fund?

You can attain profits in correlation with the stock market. The liquidity is high for the UTI Nifty Index fund. It means that you can redeem the invested amount whenever you need it. Do not invest most of the portion in cash as it leads to lower returns. The investment value, market value, and gain values are displayed in the dashboard before investing. You can choose the mode of investment (choose between lumps and SIP).

You can select the folio, product you want to invest in, and the payment method. Fill your details (name, age, etc.) and bank details (account number). Check all the details and pay. It is comparatively easier to invest in the UTI Nifty Index Fund

Nippon India ETF Nifty BeS Vs UTI Nifty Index Fund:

If you choose to invest in the Nippon India ETF Nifty BeS, you need to pay money to open a Demat account to invest in it first. UTI Nifty Index fund is highly suitable if you are a new investor or do not know much about investments. If you do not want to invest in other stocks, it is not ideal to create a Demat account. Nippon India ETF Nifty BeS is ideal for regular investors. People have to invest in brokerage (nearly 0.2 per cent) to buy or sell the ETF. Hence it is an extra expense. Thus it is not better than the UTI Nifty Index Fund.

There are no liquidity issues in index funds, thus UTI Nifty Index Fund. You can also trade the UTI Index Funds infractions. Hence UTI Nifty Index Funds is better than the Nippon India ETF Nifty BeS. You can, however, choose what works best for you with careful analysis.

***Disclaimer: We are not any legal financial expert nor do we claim to be one. The details provided above is a result of the extensive research that we have carried out. However, this is not a piece of financial advice. We highly recommend you to discuss a financial adviser before making any financial decision. 


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