Both NiftyBees and SBI nifty 50 ETF, are the ETF of CNX Nifty 50 traking the same 50 scrips in almost same proportion as in CNX Nifty 50, just the difference is that they are issued by different AMCs…
niftybees you are buying from your trading account during trading hours so you have a good handle over price to buy if u follow technicals…don’t get bothered by such articles…also most guys just compare settlement prices with NAV of index fund…ignore the noise on tracking error etc,.focus on strategy as i said earlier
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ignore the analysis on tracking error etc…its a waste of time…buy & average out as per the strategy as i mentioned if you really want to compound your wealth…its my experience & let me tell u it gives excellent returns with juniorbees & niftybees…if u really want to cross check…just backtest from niftybees charts in oversold to overbought zones…
Have you explored https://www.smallcase.com/ – check the discover section and explore some options there. This will be good if you have some funds and want to do an SIP. Smallcases are basically themes / baskets of stocks. You don’t have an expense ratio like MFs.
Check it out.
@CoolBird arbitrage takes care of tracking errors quickly. I suppose one can treat the etf as a stand-alone stock anyway. But for investors who don’t want to be bothered with frequent trades, index funds are better, it’s simpler.
I’m intrigued, Do you primarily trade nifty bees? How many times do you trade? How many % points do you beat the index? Don’t have to be super accurate, just answer roughly…
I do use nifty bees, but more as holder of cash when there are no opportunities. I prefer trading in nifty stocks and some Midcaps while using the etf as bank.
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My small piece of advice , I prefer nifty bees and bank bees since these are allowed to be pledged whereas index funds like UTI Nifty Fund isn’t allowed to be pledged .
The collateral can be used in F&O
The cost benefit of pledge when accounted to F&O trading would workout to be 3-4 % extra over index fund.
Lower haircut wrt some index funds compared to NiftyBees @ManoranjanS NiftBees might be preferable for other reasons, but not for the reason you specified.
I meant Index funds like UTI Nifty or Next 50, Hdfc Nifty are not allowed to be pledged, Hence there is opportunity loss compared ETFs.
Sorry I couldn’t understand your response. Could you @Vij kindly elaborate.
NiftyBees haircut is 11.34%
HDFC Index Fund - Sensex Direct Plan has a haircut of 7.5%
@ShubhS9
I only see ONE Sensex Fund (Direct Plan) in the collateral list. why is there no direct nifty index fund ?
@Vij i understand you want to get deeper. i put batch orders at various prices when niftybees is in oversold zone so don’t need to chase it whole day…accumulate across days of correction, then follow strategy as i earlier stated & you will forget active equity mutual funds. I do take hdfc sensex & debt funds which i pledge to do my options strategy which i mentioned in my other post. I don’t take too many stocks as ETFs are better with no impact of corporate earnings/degrade/negative news etc…as u see even excellent stocks sometimes get beaten up. ETFs carry no STT, low in transaction cost etc…several benefits which you just cannot afford to miss
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Are you sure there is no STT on Niftybees ?
Well found this: So STT is applied at 0.001% on delivery for Niftybees and 0.025% for non delivery based. (Both cases only on sell side)
Have never been a fan of SIP’s. You simply lose your control on what price your buying at. I prefer Lumpsum at the price i want to purchase at. Hate to be a Lazy Investor, and letting the fund decide what I want to do. I am more of an active trader, who needs to have 100% control of my Entry and Exit points.
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Which was exactly my point in my earlier conversation. There will always be charges some or the other, that’s how it works. The reason I choose NiftyBees as a stock and Index fund or any other funds as a MF, is because I want 100% control over my entry and exit points. There are days when the Bees falls 5 to 7 points in a matter of couple of hours and that’s the moment i want to enter and make a purchase, not wait for the end of the day or the next day for the NAV to be updated or blindly plug a SIP and let the fund control my exit point. That not how my investment strategy works. E.g Bees Open price for a particular day is 161 and the Close Price is 160, but somewhere in the middle of the day it hit 153( I want 153 as my Entry point). Hope you are getting the point that am trying to make. Control is my objective.
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It’s upto the Clearing Corporation. If and when direct plans are accepted by the CC, you will be able to pledge.
According to Download Ref No: NCL/CMPT/48032 dated Apr 20
Many additional index funds are allowed to be pledged. Could you please kindly update the same list in zerodha list of allowed securities that can be pledged.
i know this…its negligible for delivery, just calculate & see. it is just kept for namesake.
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yes, this is why i’ve always pushing for DIY approach using passive ETFs. even i’ve been against SIPs & have been blogging for several years on this.
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Do you have a blog ? Kindly share the link, maybe we can learn more from your insights.
used to write on traderji, valueresearchonline etc but can’t find it now…i’m not an advisor, neither selling anything. just free services to my network…have built a system & have my WA channel.
From what I see, this works well with most indices. The idea behind this strategy (and most technicals on indices) has a higher probability when the short term trend of an index aligns with the ‘long term trends’. And ETF is a good vehicle to ride these short term trends on indices.
And glad to see more ETFs tracking different sectoral/broad market indices making their way for retail traders. Just hope volumes pick up well over longterm in the new ETFs tracking NIfty sectors and foreign indices.