Software & Finance

Nifty - Exchange Traded Funds Investments in NSE

I have discussed the possible investment opportunities in India on Exchange Traded Funds in this article.


The term Exchanges Traded Funds (ETFs) are not well known in India like Mutual Funds. It is also like a mutual fund but can be traded in real time during market hours. ETFs can be closed ended or open ended.

In Open Ended ETFs, the shares can be dynamically created or destroyed based on Markets demand.

In closed End ETF, shares can not be created dynamically. When there is a too much demand for closed end ETF, those shares will be trading with a premium. It can also be traded with a discount when there is no demand.

Benchmark Mutual Fund offers a variety of Exchange Traded Funds in India. Please for more details.

You can include the following NSE ticker symbols into your watch list.

  • BankBeES  tracks the performance of CNX Bank Index.
  • NiftyBeES tracks the performance of S&P CNX Nifty Index
  • LiquidBeES  invests in short-term government securities and money market funds with short maturities by providing safety. 
  • GoldBeES  tracks the performance of domestic price of the gold

Currently Nifty is in a range bound trading sessions and looking for direction. Next major support level for Nifty is just above 4710. Nifty rebounded strongly from these levels two times in the recent past that is about 4711 from last week of October 2009 and about 4718 from first week of February 2010.

Based on the technicals, it is safe to buy if Nifty hits 4720 again in the near future that is around 11% pull back from close of 24 June 2010 which is 5320.60.

Currently gold prices are trading at its all time highs and so it is better wait for a significant pull back. If you are looking for Gold as an investment, then you can invest in GoldBeES along with physical gold.

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Posted on June 26, 2010