NIPPON INDIA MF SLASHES NIFTY 50 BEES ETF EXPENSE RATIO BY OVER 25%

Nippon India Mutual Fund on 14 April 2023 announced a significant reduction in the expense ratio of its Nifty 50 BeES ETF by 25.20%.

Prior to the reduction, the expense ratio for the Nifty 50 BeES ETF was 0.05%. However, effective 20 April 2023, it will reduce to 0.0374%.

For example, if an investor invests Rs 1 lakh in the Nifty 50 BeES ETF, the cost of investment will reduce from Rs 50 to Rs 37.4 per year. Similarly, for an investment of Rs 10 lakh, the cost will reduce from Rs 500 to Rs 374 per year, and for an investment of Rs 1 crore, the cost will reduce from Rs 5,000 to Rs 3,740 per year.

The expense ratio is the annual fee charged by mutual funds and ETFs to manage the fund`s assets. The lower the expense ratio, the higher the returns for investors.

The Nifty 50 BeES ETF is one of the most popular ETFs in India. It aims to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty 50 Index.

As on 31 March 2023, the ETF achieved a CAGR of 0.53% over the past year, 27.70% over the last three years, 12.62% over the last five years, and 15.39% since its inception on 28 December 2001.

Powered by Capital Market - Live News