Nifty BeES best bet for equity exposure: Sharekhan’s Mokashi
Kapil Mokashi, Equity Advisor, Sharekhan, believes this is the right time to invest in equity with the benchmark indices at two year lows.
By ET Online |
MUMBAI: Kapil Mokashi, Equity Advisor, Sharekhan, believes this is the right time to invest in equity with the benchmark indices at two year lows.
���Considering the fact that we are almost trading at two year lows on index, this is an excellent opportunity for first time investors to build fresh exposure in equity markets. It is always safe and best to start from investment in an equity index fund,��� says Kapil Mokashi, Equity Advisor, Sharekhan Ltd.
���You might face some complications as to which index funds to select from, which brings me to a lesser known concept of ���Nifty BeES���. Investment in Nifty BeES, in a staggered manner, could be an ideal way to start building your exposure,���
Nifty BeES is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index.
It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.
One can also consider doing an SIP in Nifty BeES. As an example, if you commit Rs 10,000 per month in Nifty BeES on the 1st of every month for the next five years. Assuming a modest 12% CAGR your monthly investment would grow to Rs 8,16,696. On optimistic side, if your amount grows by CAGR of 20% you could accumulate a handsome Rs 10,17,582. And all this would be tax free, assuming you stay invested over a period of one year.
���Considering the fact that we are almost trading at two year lows on index, this is an excellent opportunity for first time investors to build fresh exposure in equity markets. It is always safe and best to start from investment in an equity index fund,��� says Kapil Mokashi, Equity Advisor, Sharekhan Ltd.
���You might face some complications as to which index funds to select from, which brings me to a lesser known concept of ���Nifty BeES���. Investment in Nifty BeES, in a staggered manner, could be an ideal way to start building your exposure,���
Nifty BeES is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index.
It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.
One can also consider doing an SIP in Nifty BeES. As an example, if you commit Rs 10,000 per month in Nifty BeES on the 1st of every month for the next five years. Assuming a modest 12% CAGR your monthly investment would grow to Rs 8,16,696. On optimistic side, if your amount grows by CAGR of 20% you could accumulate a handsome Rs 10,17,582. And all this would be tax free, assuming you stay invested over a period of one year.
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