Taking Position in Nifty

Hi All,

My query may seem foolish, but I am ignorent of the situation and that's why asking the question.

I want to ask that how can a person take a position in nifty (the index), except for purchasing the same in futures. Is it possible to buy nifty index in cash section or do we have to go thru the futures route only (which is high risk / reward business)

thanks in advance.
SKG

You could do so thru index funds.

Hello

You can check out Nifty ETF, 1 unit is 1/10th of nifty, listed on NSE.

Usually trades at a premium of 5+ points as also carries some dividend component.

The big problem is low liquidity, resulting in worst spreads and impact cost. Another problem is only 1 instrument currently so no diversification.

But over all a good product, tracks nifty realtime. Works ok if you don't mind putting in a limit order and can wait for a fill.

Thanks
Nb

Thanks very much for your precious time to make things clear.
However, does ETFs trade like normal shares or their brokerage / entry / exit charges are higher?

SKG

Listed on NSE, belong to EQ series, trade same as any other share in cash segment.

Cost of trading is not to be confused with cost of management of the Mutual Fund, its an index MF just can also trade it on NSE.


Symbol

NIFTYBEES

JUNIORBEES


NSE ETF Link

Check the quotes on NSE Web site

Intraday chart

Nifty ETF

Nifty Jr ETF

Beside these also have Bankbees I think

Thanks
nb

Thanks NB. Really appreciate your help.