The scheme was the first ETF with global exposure; however, the market response has been tepid so far
Benchmark Mutual Fund's Hang Seng BeES or Hang Seng Benchmark Exchange Traded Scheme launched in March this year is yet to become popular. It is the first foreign index based exchange-traded fund (ETF) listed in India (on the National Stock Exchange). Hang Seng BeES gives Indian investors an exposure to the Hong Kong and Chinese markets.
Trading volumes of Hang Seng BeES continue to be low, leading to low liquidity and wide bid-ask spread. At the end of the day today, the 'buy' price was Rs1,252 and the 'sell' price was Rs1,265. Total traded volumes today were just 156 units with a total turnover of Rs1.96 lakh. On an average, just 277 units were traded per day in August on the NSE. The turnover on the BSE is negligible. The open-ended passively managed fund was launched on 15 February 2010.
The Hang Seng index is a popular indicator of the performance of the Hong Kong stock market. HSBC Holdings, Bank of China, Hang Seng Bank and China Mobile are some of its constituents.
There have been a number of ETF launches by fund houses but investor appetite for such funds continues to remain low. Recently, Birla Sun Life Mutual Fund filed a draft offer document to launch its Nifty ETF. Benchmark Mutual Fund plans to launch six open-ended ETFs like IT BeES, FMCG BeES, SERVICES BeES, ENERGY BeES, PHARMA BeES, and REALTY BeES. Currently there are 22 ETFs listed on the NSE and the Bombay Stock Exchange (BSE).
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