Niftybees last announced dividend in 2015, why there is no dividend payout since then?

Niftybees last announced dividend in 2015, why there is no dividend payout since then?

Lot of Nifty 50 stocks have announced dividend in the last 3 years, and the dividend payout would have got credited in the fund account. Why there is no payout to the unit holders?

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Yes, this is true.

Nifty 50 ETF is made up of the 50 stocks (in the same proportion as the index) + a cash component.

Every ETF company (AMC) has a board which decides to pass on the dividends or not. If the board decides not to pass on the dividend, then they retain the cash and the cash component increases. Given this, the cash component has swelled in Nifty 50 since 2015.

Having said so, I’m not sure about what really influences the board to retain the cash and not pass it to investors? I’ve touched base with Reliance with this questions, waiting to hear from them. Will update as soon as I have the answers.

Meanwhile, they do invest the retained cash in money market instruments. Have a look at this section of their portfolio -

It is also interesting to note that these guys are active in the SLBM market (highlighted in blue).

What’s the update on this?

According to Nippon, the dividend is reinvested in the fund which reflects in the NAV, can read more on their website.

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Hi Kartik, any update on this please?
Some people saying dividends are reinvested like growth mutual funds then NAV of NiftyBees should match with Nifty50 TRI right? I dont see that happening.

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it is best not to give dividends. Dividends are tax ineffective. You will make considerably more money in the end when you are old and en-cash the etf. Infact, I was looking wondering why NiftyBees is paying out a dividend when I found this post. I want them to never give out dividends.