Etf on finnifty index

@ShubhS9

Good evening!

I would like to know whether there is any ETF on Finnifty like Niftybees or Bankbees.

Would you please confirm that?

One quick way I found to discover if a particular Index has any ETF tracking it is by using the Fundamentals option in Kite. I created a short GIF demonstrating how to do that -


Also, in another thread, Bhuvan mentioned that Bank Nifty ETFs might be an alternative as the correlation between the two indexes is almost 90% -

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It isn’t like that , if you are forming any active strategy , there are lot of differences. Just look at today’s closing prices. And on top of that past correlation is neither guaranteed to continue in future.

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I think your argument is quite logical. In regards to option trading it is not safe to make any strategy with ETF that follows other index. May be there is correlation but as you said, there’s no guarantee…

So it doesn’t work this way… Thanks bro for your insights.

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Thanks for the informative gif. It is very much useful.
However, for taking any position in option of Finnifty with the help of EFT of Banknifty may not work well. There will be always a contention when those stocks which are not common in these two indices will perform in opposite way.

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Sure, but on a longer run. You can’t expect daily movements to match.

A workaround would be to invest in the underlying stocks directly, in the exact weightage used in the index…

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Right… That’s why people invest in ETFs… To invest individually is not possible for the small investors or traders. So the easiest way to invest in ETFs.

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