There is no Buy/Sell button for Nifty 50. There are such buttons for other future but not for Nifty.
So if I want to buy a lot of Nifty via Kite , how can I do that ?
Nifty 50 is an Index comprising of 50 stocks and can’t be bought. In order to buy the Index, you’ll have to buy the constituent 50 stocks in the same weightage as they hold on the Index.
Alternatively, you can also buy NiftyBees, the ETF on the Index which will replicate the performance of the Index.
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At the close today, Nifty 50 is at 7234.55 and NiftyBees at 730.98 . How is NiftyBees replicating Nifty 50. Please explain
Can you please reply ?
In NiftyBees your money along with many others who are interested in buying Nifty 50 are put together to buy the various stocks of Nifty 50. Since, you are investing as a group the price per stock is lower.
NIFTYBEES, ICICINIFTY,KOTAKNIFTY (all Nifty 50 etfs) behave slightly different depending on the daily redemption pressure or inflow of more money in to their corpus. The mony managers incur costs while buying & selling the index stock components.+their management fee (usually say 0.5%)
You will also notice these ETF’s fall harder (slightly compared to the index )when the market is bearish &closes higher relative to the index when the market is bullish .Not sure they use futures & options to juice the box.
But these ETF’s are not double /triple leveraged.
There will be a slightly performance lag. That is the price you pay for investing small money in the index with out looking at the screen all day/all week. Nifty futures &options are big contracts & highly volatile .
