Nippon Hang Seng BeES

About Nippon India ETF Hang Seng BeES

• The Nippon India ETF Hang Seng BeES is an open-ended index scheme. It invests in overseas securities listed on the exchange in the form of an ETF that tracks the Hang Seng Index.
• Offered by the Nippon India Mutual Fund House, the fund is listed on the NSE, under the symbol HNGSNGBEES.
• Its inception date was March 9, 2010.
• The fund’s Assets Under Management (AUM) stands at ₹508.87 crore as of June 30, 2024.
• The fund has been managed by Kinjal Desai since May 2018 and Siddharth Deb since November 2016.
• The ETF units can be traded at the prevailing price during the usual market hours.
• One can invest in the scheme by buying the ETF units directly through a demat account.

Investment Objective and Benchmark

• The fund’s investment objective is to provide returns that closely match the performance of the benchmark index, by investing in the same securities in the same proportions.
• The Nippon India ETF Hang Seng BeES benchmark is the Hang Seng Total Return Index, which is among the oldest and leading stock market indices in Hong Kong.
• Investors need to remember that the fund falls under the very high risk category. It is suited for those looking at a long-term wealth creation goal.
• The ETF offers diversification to the portfolio with exposure to the international market, particularly the Hong Kong market.

Asset allocation and portfolio composition

• The Nippon India ETF Hang Seng BeES includes a diverse range of companies that are part of the Hang Seng Index.
• In terms of asset allocation, the fund invests 97.94% in equity and the remaining 2.06% is allocated to other types of investments.
• The sector allocation of the fund is 33.55% in financial, 17.20% in services, 9.94% in technology, 7.64% in energy, 5.32% in consumer discretionary and 26.35% in other sectors.

As of May 31, 2024, these are the top 10 companies in terms of weightage (%) that are included in the Nippon India ETF Hang Seng BeES:

• Tencent Holdings Limited: 9.28%
• HSBC Holdings PLC: 8.44%
• Alibaba Group Holding Limited: 7.28%
• AIA Group Ltd: 5.90%
• Meituan: 5.34%
• China Construct BK-H: 5.13%
• China Mobile Ltd: 3.95%
• Industrial and Commercial Bank of China Ltd: 2.96%
• Cnooc Ltd: 2.79%
• Hong Kong Exchanges and Clearing Ltd: 2.71%

As of June 28, 2024, Nippon India ETF Hang Seng BeES’ CAGR over one year stood at 1.32%, compared to the benchmark index’s yield of -0.51%

The scheme has delivered an annualised return of 5.49% since its inception.