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Nifty 50 Vs Nifty BeES – Differences, Constituents, and Eligibility Criteria for Stocks

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Shweta22
Nifty 50 Vs Nifty BeES – Differences, Constituents, and Eligibility Criteria for Stocks

Understand the distinctions between the Nifty 50 and the Nifty BeES: The Nifty 50 is one of the two key indices in the Indian stock market that represent the economy's overall performance. Benchmark Asset Management launched the Nifty BeES ETF, which is based on this index.


In this article, we will compare the Nifty 50 to the Nifty BeES and look at the differences between the two.


What exactly is the Nifty 50?

The term "Nifty" is a combination of the words "National" and "Fifty." It is an index that serves as the National Stock Exchange's benchmark. It consists of the top 50 companies on the Indian stock exchange. What exactly are Nifty BeES?

Nifty BeES is an exchange-traded fund (ETF) that is a basket of securities that reflects the Nifty 50 Index's composition. This ETF is traded on the stock exchange and can be purchased and sold just like any other stock.


Nifty BeES tracks the Nifty 50 index and provides returns that are comparable to the Nifty 50 index. It trades at one-hundredth the value of the Nifty 50 index, allowing individuals to diversify their investments at a low cost.

Stocks that meet the eligibility criteria for inclusion in the Nifty 50

Market impact cost is the most accurate metric for determining a stock's liquidity. It accurately depicts the costs associated with trading an index. A stock must have traded with an effective cost of 0.50% or less on average over the previous six months for 90% of the observations, with a basket size of Rs 10 crores, to be considered for inclusion in the NIFTY50.

To be eligible for inclusion in the index, the company must have been listed for at least six months.

To be considered for inclusion, the company must be permitted to trade in the futures and options markets.

The company that issues an initial public offering (IPO).

Read more on: Understand the distinctions between the Nifty 50 and the Nifty BeES

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