Nifty Benchmark Exc.tr.scheme

swagat86 · #1 7th August 2006, 01:07 AM

Hi frnds. I just tumbled upon a exchange traded fund. Checked out the charts. It moves exactly in accordance with nifty. On Friday a person who would hav gone short on this would have made 2% easily. Can fellow boarders pls share more they abt this. I hav very less idea abt ETF's.
pls help

Chills

aca_trader · #2 7th August 2006, 03:06 AM

Quote:

Originally Posted by swagat86

Hi frnds. I just tumbled upon a exchange traded fund. Checked out the charts. It moves exactly in accordance with nifty. On Friday a person who would hav gone short on this would have made 2% easily. Can fellow boarders pls share more they abt this. I hav very less idea abt ETF's.
pls help

Chills

Swagat, what kind of fund is this? I hope this is not an Index Fund Traded upon exchange. Besides, if it has a perfect 1 beta, why to trade the ETF when one can trade futures?

Best Regards,
--Ashish

swagat86 · #3 7th August 2006, 08:01 AM

that is true ashish but like i dont trade futures till now, becs the risk is high.
Thats y i was asking.

thanks

jdm · #4 7th August 2006, 10:42 AM

Quote:

Originally Posted by swagat86

Hi frnds. I just tumbled upon a exchange traded fund. Checked out the charts. It moves exactly in accordance with nifty.

exchange traded fund or ETF are basket of securities like any index and unlike mutual funds they can be freely traded like any security on the bources. they are based on popular indexes and thus it move in accordance with the underlying index.

for example Niftybees (the first ETF in the Indian market) is based on Nifty, while SPICE is based on Sensex. they are a very efficient way of investing particularly for people with little capital.

inspite of being very popular investment vehicle all over the world it is yet to catch on in India. the volumes are too low to trade in, even after more than 4 years of their existence.

cheers,
jdm.

helpful sites:

http://www.benchmarkfunds.com/

http://www.nseindia.com/content/products/prod_etfs.htm

swagat86 · #5 7th August 2006, 08:46 PM

thanks Joy da

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