Reliance Etf Junior Bees: A Smart Investment Guide

Reliance ETF Junior BeES is an open-ended fund of fund scheme that invests in Reliance ETF Junior BeES. Nifty Next 50 represents the balance 50 companies from NIFTY 100, excluding the NIFTY 50 companies. NIFTY 100 represents the top 100 companies based on full market capitalisation from NIFTY 500. Reliance Junior BeES FoF provides an opportunity for non-demat holders to gain exposure to the large-cap segment of the market. The minimum application amount for Reliance ETF Junior BeES is Rs.5,000, with no entry or exit load.

Nifty Next 50 companies

Nifty Next 50 is an index comprising 50 companies that follow the Nifty 50 in terms of market capitalization. These companies are ranked just below the Nifty 50 and are considered potential future leaders. The Nifty Next 50 index is computed using a float-adjusted market capitalization-weighted methodology, which takes into account constituent changes and corporate actions.

The Nifty Next 50 companies are primarily mid-cap companies, which may become large-cap stocks in the future. These companies offer a glimpse into firms likely to achieve blue-chip status and provide valuable insights into the next wave of market performance. By investing in the Nifty Next 50, investors can gain exposure to a diverse set of mid-cap companies and potentially higher returns than large-cap stocks.

• Hindustan Aeronautics
• Indian Oil Corporation
• Godrej Consumer Products
• Punjab National Bank
• Power Finance Corporation
• Life Insurance Corporation of India
• Industrial Conglomerates
• Tata Consumer Products
• Dr Reddy's Laboratories
• Torrent Pharmaceuticals

Investing in the Nifty Next 50 can be done through exchange-traded funds (ETFs) such as the Reliance ETF Junior BeES. This ETF aims to provide returns that closely correspond to the Nifty Next 50 Index. It invests at least 90% of its total assets in the stocks of its corresponding underlying index.

Nifty 50 companies

Nifty 50 is a diversified index comprising the top 50 Indian companies across 14 sectors. It broadly reflects the performance of the Indian economy and is used as a benchmark for many mutual fund schemes.

• Bharti Airtel Ltd
• Dr. Reddy's Laboratories Ltd
• Tata Consultancy Services Ltd
• Tech Mahindra Ltd
• Reliance Industries Ltd
• Titan Company Ltd
• Eicher Motors Ltd
• Adani Enterprises Ltd
• Kotak Mahindra Bank Ltd
• Adani Ports and Special Economic Zone Ltd
• Mahindra & Mahindra Ltd
• Ultratech Cement Ltd
• State Bank of India
• HCL Technologies Ltd
• Bharat Electronics Ltd
• Hero MotoCorp Ltd
• Maruti Suzuki India Ltd
• Bajaj Finance Ltd
• Hindalco Industries Ltd
• Hindustan Unilever Ltd
• Bharat Petroleum Corporation Ltd
• IndusInd Bank Ltd
• Larsen & Toubro Ltd
• Britannia Industries Ltd
• Tata Consumer Products Ltd
• Apollo Hospitals Enterprise Ltd
• Sun Pharmaceutical Industries Ltd
• Bajaj Finserv Ltd
• Oil & Natural Gas Corporation Ltd
• Power Grid Corporation of India Ltd
• Grasim Industries Ltd
• Asian Paints Ltd
• Nestle India Ltd
• HDFC Life Insurance Company Ltd
• Shriram Finance Ltd
• SBI Life Insurance Company Ltd
• Tata Motors Ltd
• ITC Ltd
• ICICI Bank Ltd
• Infosys Ltd
• Adani Power Ltd
• Reliance Tata Power
• Idea Jio Financial Services
• Zomato
• Adani Wilmar
• LIC
• Tata Steel
• IRFC
• ITC
• Yes Bank

You can invest in Nifty 50 in several ways, depending on your preferences and goals:

• Direct Investment in Nifty 50 Stocks: You can buy individual stocks of Nifty 50 companies through a brokerage account, giving you direct ownership.
• Exchange-Traded Funds (ETFs): Nifty 50 ETFs aim to replicate the performance of the Nifty 50 index. Buying shares in these ETFs provides exposure to the entire index, and they can be traded on stock exchanges like stocks.
• Index Mutual Funds: There are mutual funds that track the Nifty 50 index, and you can invest in these funds through various mutual fund platforms.

Nifty 50 offers benefits such as diversification, low costs compared to actively managed funds, stability due to large-cap companies, liquidity, and the potential for long-term growth. However, it's important to remember that investing in stock market indices like the Nifty 50 also carries risks, including market volatility and potential downturns.

Nifty 500 companies

Nifty 500 is a broad market index comprising 500 large-cap, mid-cap, and small-cap stocks listed on the National Stock Exchange (NSE). It offers investors a diversified exposure to the Indian equity market. The Nifty 500 is composed of 500 carefully selected stocks, representing a diverse range of companies and industries. This diverse composition ensures comprehensive market coverage and reduced concentration risk for investors.

To be included in the Nifty 500 index, companies must be part of the eligible universe, which includes companies ranked within the top 800 based on both average daily turnover and average daily full market capitalisation over the previous six months. Additionally, eligible companies must have been traded for at least 90% of the days during the previous six months.

The Nifty 500 is reviewed twice a year based on six-month data ending on January 31 and July 31. The eligibility criteria for newly listed securities are checked based on three months of data instead of six.

Some of the companies that are part of the Nifty 500 include Asian Paints Ltd., Bajaj Holdings, Blue Dart, Castrol, Mahindra Holiday, and SBI Card, among many others.

Nifty Next 50 index constituents

The Nifty Next 50 Index represents the 50 companies from the Nifty 100, excluding the Nifty 50 companies. The Nifty Next 50 index is computed using a float-adjusted market capitalization-weighted methodology. The methodology also takes into account constituent changes in the index and corporate actions such as stock splits and rights issuance, without affecting the index value.

The Nifty Next 50 index acts as an incubator to the Nifty 50 index. 85% of index constituents that have been included in the Nifty 50 index have moved from the Nifty Next 50 index for the period 2009-2018. The Nifty Next 50 index provides exposure to the large-cap segment of the market, investing in well-diversified constituents spread across 22 industries.

Some examples of Nifty Next 50 index constituents include Hindustan Aeronautics, Industrial Conglomerates, and Life Insurance Corporation of India Ltd.

When investing in the Reliance ETF Junior BeES, investors are investing in the Nifty Next 50 index. This is a fund that provides returns that closely correspond to the returns of securities represented by the Nifty Next 50 Index. The scheme will invest at least 90% of its total assets in the stocks of its corresponding underlying index.

Systematic Investment Plan (SIP)

When you apply for an SIP plan, the amount is automatically debited from your bank account and invested in the mutual funds you have purchased at predetermined time intervals. At the end of the day, you are allocated mutual fund units depending on the NAV (Net Asset Value) of the mutual fund. With every investment in an SIP plan in India, additional units are added to your account depending on the market rate. The amount being reinvested grows over time, leading to larger returns on those investments.

You can choose to receive the returns at the end of the SIP's tenure or at periodic intervals. The frequency of your investments can be customised to match your preferences and income. For example, you can start a SIP with a set amount, such as Rs 500, which will then be deducted from your account and auto-credited to the mutual fund you want to invest in at a certain date every month.

SIP is a beneficial option for those who do not possess superior financial knowledge or the time to analyse market movements and the right time to invest. With SIP, you can relax and let your money grow through automated investments. Additionally, the periodicity of SIP ensures that you are actively working towards growing your investments.

Another advantage of SIP is rupee cost averaging. Since your investment amount remains constant for a longer period, you can take advantage of market volatility. The fixed amount you invest through SIP averages out the value of each unit, allowing you to buy more units when the market is low and fewer units when the market is high, thus lowering your average cost per unit.

Frequently asked questions