Questions on ETF BEES

General
1

Since I am not aware of ETF BEES, I have few questions on it which may sound very basic, would appreciate any help.

  1. Can ETF BEES be traded like normal equity, we buy today sell after a week?
  2. Are the charges more?
  3. Do they have enough volume?
  4. Can you share some links on it?
  5. Is there any restriction on any kind of etf like hangseng bees?

Thanks in advance

2

What are ETF BEES?

I assume you are referring to all the ETFs in general. AFAIK there is nothing called ETF BEES.

They are just refered to as ETF.

The term BEES is a nomenclature used for the ETFs introduced by the Nippon India MF, and therefore it is specific to this fund house.

Each MF house uses different nomenclature to name/differentiate their ETF. So, all ETFs don’t end with BEES, there are many ETFs available and each have a different name.

  1. Yes, you can trade in equity ETFs similar to stocks.

  2. The charges remain the same. (STT on ETFs)

  3. This is similar to stocks, not all ETFs get traded actively or have liquidity or volume. You would have to do some analysis and filter out ETFs based on the trading volume and invest in those with higher volume to avoid illiquidity.

  4. Here is the list of ETFs available
    http://www.nseindia.com/market-data/exchange-traded-funds-etf

  5. Not aware of any such restrictions on ETFs.

1 Like
3

Thank you so much, yeah, I wasn’t aware much about it but thanks to you everything got cleared

4

No, the charges (STT) are actually a little less for ETFs compared to stocks.

1 Like
5

Hi. I’m continuation to this, is purchasing an etf a leveraged trade?

For eg, I wanted to purchase 1L worth of PSU bees yesterday just to try it out. In 1L, it allowed me to purchase 5L worth the amount, which is the same as the margin given for intraday equity.

Is this the case with all etfs? Can they be traded overnight with pledged margin? (As we can do for option writing or futures)

6

You must have tried to purchase intraday (MIS). Try purchasing longterm (CNC). It won’t allow you to buy 5L worth of ETFs (any ETF) in 1L.