Nippon Nifty 5 yr GSec BeES

About Nippon India Nifty 5-year Benchmark G-Sec ETF

• Nippon India Nifty 5-year benchmark G-sector ETF is an open-ended gilt scheme with a constant duration of 5 years.
• The ETF belongs to Nippon India Mutual Fund House which invests in bonds issued by the Government of India.
• Nippon India Nifty 5-year benchmark G-sector ETF was launched on April 5, 2021.
• The assets under management (AUM) that stood at ₹155.93 crore as of June 30, 2024.
• Pranay Sinha and Siddhart Deb are the fund managers.
• Nippon India Nifty 5-year benchmark G-sector ETF is traded on the National Stock Exchange (NSE) which enables investors to trade at market price during each session.
• One can invest in the scheme by buying the ETF units directly through a demat account with a registered broker.

Investment Objective & Benchmark

• The investment objective of the scheme is to provide returns before expenses that correspond to the performance of equity stocks in the underlying index.
• It is benchmarked against of NIFTY 5-year Benchmark G-Sec Index.
• The Nippon India Nifty 5-year Benchmark G-Sec ETF provides investors with an opportunity to invest in a diversified portfolio of government securities with a medium-term maturity profile.
• The ETF spreads out risk compared to individual bonds.
• A moderate-risk financial instrument, the scheme is best suited for those looking for income over a long-term horizon.
• The risk of default in this ETF is low as the underlying assets are government securities.
• Government securities typically carry lower credit risk compared to corporate bonds, but they are subject to interest rate risk and macroeconomic factors.

Asset Allocation & Portfolio Composition

• The fund's asset allocation of this ETF comprises around 98.60% in government securities and 0.43% in Clearing Corporation of India Limited (CCIL).
• Nippon India ETF Nifty 5 yr Benchmark G-Sec has delivered a return of 7.28% as of June 28, 2024, compared to the benchmark index's yield of 7.4% during the period.
• Since its inception, the ETF has posted a CAGR of 5.42%