Gold BeES

About Nippon India ETF Gold BEES

• Nippon India ETF (Exchange Traded Fund) Gold BEES is an open-ended scheme offered by the Nippon India Mutual Fund House.
• The ETF tracks the performance of gold prices in the domestic market.
• The fund was launched on March 8, 2007.
• This ETF is managed by fund manager Vikram Dhawan.
• Investments in this ETF require a demat account with a registered broker.
• Nippon India ETF Gold BEES units can be traded just like equity stocks during the operational hours of the stock exchanges.

Investment objective and benchmark

• Nippon India ETF Gold BEES aims to offer returns closely corresponding to the returns provided by its benchmark, the domestic price of physical gold.
• The scheme doesn't guarantee returns and they may be subject to market risk. Categorised in the high-risk group, this type of fund is suited for investors looking for a medium to long-term goal.
• Gold is a hedge against inflation as well as economic deflation. It has volatility compared to equity stocks.
• Gold prices have historically recorded growth defying market trends during slowdowns.
• The ETF is a cost-effective alternative to investing in gold without going through the hassle of acquiring it physically.
• Investment in physical gold can be a tedious process with additional costs such as making charges, storage charges and dealer premiums.
• The ETF rates are transparent as they are traded like shares on the National Stock Exchange and offer greater liquidity. There is no consistency when you buy and sell physical gold across jewellers or banks.

Asset allocation and portfolio composition

• The ETF has allocated 64.78% of the available funds for investment in Gold 995 1 KG Bar. Further, 14.08% of the assets have been allocated for investment in Gold 995 1 KG BAR-Ahmedabad. The remaining 0.01% of the funds are invested in Clearing Corporation of India Ltd.
• Nippon India ETF Gold BEES has delivered a yearly return of 22.57% as of June 28, 2024, compared to 23.8% earnings posted by the underlying index.
• Since its inception, the ETF has posted an 11.31% return.