GS BeES
FAQs
- What are GS BeES?
GS BeES are a family of Exchange Traded Funds (ETFs) launched by Goldman Sachs Mutual Fund. ETFs are mutual fund schemes, which combine the best features of open ended and close-ended funds. They are like stocks, listed on NSE, liquid, tradable throughout the day, priced continually and in demat format.
At the same time, BeES are like index funds. They offer the benefits of diversification, index tracking and low expenses. BeES represent a unique tool for investing in a mutual fund at the price and time of your choice.
The following lists out available ETFs with Goldman Sachs Asset Management (India) Pvt. Ltd.:- Equity ETFs
GS Nifty BeES - This scheme is based on the popular CNX Nifty Index. The investment objective of Goldman Sachs Nifty Exchange Traded Scheme (GS Nifty BeES) is to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Nifty Index. However, the performance of scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of GS Nifty BeES will be achieved.
GS Junior BeES - Based on the CNX Nifty Junior Index, considered as the next rung of liquid securities after the CNX Nifty Index. Invariably, most constituents in this index are midcap companies. The investment objective of GS Junior BeES is to provide returns that, before expenses, closely correspond to the returns of securities as represented by CNX Nifty Junior Index. However, the performance of scheme may differ from that of underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of GS Junior BeES will be achieved.
GS Bank BeES – This scheme is based on the CNX Bank Index, which constitutes 12 key stocks of the Banking sector. The investment objective of GS Bank BeES is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Bank Index. However, the performance of scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of GS Bank BeES will be achieved.
GS PSU Bank BeES – This scheme is based on the CNX PSU Bank Index, which constitutes 12 Public Sector Banks. The investment objective of Goldman Sachs PSU Bank Exchange Traded Scheme (GS PSU Bank BeES) is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX PSU Bank Index. However, the performance of scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of GS PSU Bank BeES will be achieved.
GS Shariah BeES – This scheme is benchmarked to CNX Nifty Shariah Index. The investment objective of GS Shariah BeES is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Nifty Shariah Index by investing in securities which are constituents of CNX Nifty Shariah Index in the same proportion as in the Index. However, the performance of scheme may differ from that of the Underlying Index due to tracking error. There can be no assurance or guarantee that the investment objective of GS Shariah BeES will be achieved.
- International ETFs
GS Hang Seng BeES - The investment objective of GS Hang Seng BeES is to provide returns that, before expenses, closely correspond to the total returns of securities as represented by Hang Seng Index of Hang Seng Data Services Limited, by investing in the securities in the same proportion as in the Index. However, the performance of scheme may differ from that of the Underlying Index due to tracking error.
- Non Equity ETFs
GS Gold BeES - The investment objective of Goldman Sachs Gold Exchange Traded Scheme (GS Gold BeES) is to provide returns that, before expenses, closely correspond to the returns provided by domestic price of gold through physical gold. There can be no assurance or guarantee that the investment objective of GS Gold BeES will be achieved.
- Debt ETFs
GS Liquid BeES – GS Liquid BeES has a face value of each unit being Rs. 1,000. The returns will accrue to the investors in the form of daily dividend, which is compulsorily reinvested in the scheme. The units arising out of dividend reinvestment will be credited to the investors once every month. The investment objective of the scheme is to enhance returns and minimize price risk by investing in basket of call money, short term government securities and money market instruments of short and medium maturities while maintaining the safety and liquidity. There can be no assurance or guarantee that the investment objective of GS Liquid BeES will be achieved.
- What are the advantages of GS BeES?
i. Simple
ii. Economical
iii. Convenient
iv. Liquid v. Neutral
vi. Transparent
vii. Instant Diversification
viii. Equitable Structure- How do I buy/sell GS BeES?
GS BeES can be traded on the capital market segment of the National Stock Exchange of India Ltd (NSE). GS BeES can be purchased and sold during market hours through any member of NSE. There is no minimum investment, although units are purchased in round lots of 1.
Following are the NSE symbols for BeES:
GS Nifty BeES NIFTYBEES
GS Junior BeES JUNIORBEES
GS Bank BeES BANKBEES
GS PSU Bank BeES PSUBNKBEES
GS Shariah BeES SHARIABEES
GS Hang Seng BeES HNGSNGBEES
GS Infra BeES INFRABEES
GS Liquid BeES LIQUIDBEES
GS Gold BeES GOLDBEES
- At what price should I buy or sell GS BeES?
The real-time NAV of GS BeES is available on the website of Goldman Sachs Mutual Fund i.e. www.gsam.in. Units can be bought or sold at prices close to this NAV. For GS Liquid BeES, the fund endeavors to keep the NAV constant at Rs. 1,000.
- How do I settle GS BeES?
As GS BeES trade just like any other normal listed security on the NSE, settlement is just like any other stock. In case an investor has purchased GS BeES from the market, he has to pay the broker before the pay-in on T+2 and in the case of sale, an investor has to transfer GS BeES from his demat account to his brokers account before the settlement on T+2.
- What happens in case of default on payment or delivery of GS BeES?
As clearing and settlement is done through the exchanges, the exchange's clearing house guarantees all trades. Any shortfall in units will be auctioned by the exchange and the investor is protected by the exchange mechanism.
- Is there any entry or exit loads on GS BeES?
There is no entry or exit load on direct subscription and redemption of BeES in creation unit size with the Fund.
Also there is no entry or exit load on BeES purchased and sold on NSE. However, an investor would be paying cost in the form of a bid and ask spread and brokerage and other charges as may be levied by his broker.
In case of Redemption of Units of the Schemes for less than Creation Unit size, directly with the Fund, where there have been no quotes on NSE for five trading days consecutively, an Investor can sell to the Fund with an Exit Load as follows:Name of the Scheme% of Exit Load(i) GS Nifty BeES (ii) GS Junior BeES and (iii) GS Bank BeES5%(i) GS PSU Bank BeES, (ii) GS Shariah BeES and (iii) GS Infra BeES3%GS Liquid BeES2%
Kindly note that Investors of GS Gold BeES and GS Hang Seng BeES cannot, in any circumstances, Redeem any Units directly with the Fund other than in Creation Unit size.
- Can I buy or sell GS BeES directly with Goldman Sachs Asset Management?
Yes, GS BeES can be directly purchased and redeemed from Goldman Sachs Asset Management but only in certain lot sizes called "Creation unit". Following are the creation unit size for each scheme:
GS Nifty BeES - 10,000 units and in multiples thereof
GS Junior BeES - 16,000 units and in multiples thereof
GS Bank BeES - 10,000 units and in multiples thereof
GS PSU Bank BeES - 10,000 units and in multiples thereof
GS Shariah BeES – 10,000 units and in multiples thereof
GS Hang Seng BeES – 10,000 units and in multiples thereof
GS Infra BeES – 10,000 units and in multiples thereof
GS Liquid BeES - 2,500 units and in multiples thereof
GS Gold BeES - 1,000 units and in multiples thereof
- What are the basic requirements in order to invest in GS BeES?
The basic requirements are:
A share trading account
A demat account- What is a Creation Unit?
Creation Unit is a fixed number of GS BeES, which is exchanged for a basket of shares underlying the index called the "Portfolio Deposit" and a "Cash Component".
E.g. To subscribe 10,000 units of GS Nifty BeES with the Fund, an investor has to deposit a pre-defined underlying portfolio. In exchange of this portfolio and payment of a "cash component", the Fund will allot 10,000 units to the investor.
Alternatively, investors can follow the "cash subscription" route in which they can pay cash directly to the Fund for purchasing the underlying portfolio.
This "in-kind" exchange of underlying portfolio for units is a unique feature of ETFs.- How do GS BeES compare with traditional open-ended index funds?
Short-term investor: for short-term investors, costs in GS BeES will be in the form of brokerage and bid-offer spread. The biggest advantage of GS BeES is that short-term investor can take advantage of intra-day price movements, which is not possible with traditional open-ended index funds.
Long-term investor: long-term investors benefit due to the lower overall costs of GS BeES as compared to traditional open-ended index funds.
Scheme Name March 31, 2011- March 31, 2010- March 31, 2009- Since Inception Allotment
DateMarch 31, 2012 March 31, 2011 March 31, 2010 Absolute PTP Returns Absolute PTP Absolute PTP CAGR PTP Returns (%) (INR) Returns (%) Returns (INR) Returns (%) Returns (INR) Returns (%) Returns (INR) GS Nifty BeES -8.22 9178 11.98 11198 73.73 17373 18.71 58119 28-Dec-01 CNX Nifty Index (Benchmark) -9.23 9077 11.14 11114 73.76 17376 17.26 51224 CNX Nifty Total Returns Index -8.18 9182 12.36 11236 75.29 17529 19.07 59923 GS Bank BeES -12.05 8795 24.36 12436 129.89 22989 20.78 43986 27-May-04 CNX Bank Index (Benchmark) -12.75 8725 23.74 12374 128.87 22887 19.47 40373 CNX Bank Total Returns Index -11.87 8813 24.88 12488 132.87 23287 21.32 45548 CNX Nifty Index (Addl. Benchmark) -9.23 9077 11.14 11114 73.76 17376 16.6 33381 GS Gold BeES 34.24 13424 25.72 12572 7.46 10746 23.19 28757 08-Mar-07 Domestic Price of Gold (Benchmark) 36.23 13623 27.01 12701 8.18 10818 24.43 30261 GS Shariah BeES -7.59 9241 5.96 10596 69.69 16969 21.78 18186 18-Mar-09 CNX Nifty Shariah Index -8.1 9190 5.43 10543 70.1 17010 21.13 17896 (Benchmark) CNX Nifty Shariah -6.8 9320 6.81 10681 71.74 17174 22.61 18568 Total Returns Index CNX Nifty Index (Addl. Benchmark) -9.23 9077 11.14 11114 73.76 17376 23.44 18949 GS Hang Seng BeES 2.31 10231 11.56 11156 -- -- 6.33 11347 09-Mar-10 Hang Seng Index (Benchmark) -12.63 8737 10.77 11077 -- -- -1.5 9693 Hang Seng Total Returns Index 3.03 10303 12.86 11286 -- -- 6.99 11494 CNX Nifty Index (Addl. Benchmark) -9.23 9077 11.14 11114 -- -- 1.83 10380 GS Infra BeES -18.44 8156 -- -- -- -- -23.34 6710 29-Sep-10 CNX Infrastructure Index (Benchmark) -18.45 8155 -- -- -- -- -23.05 6748 CNX Infrastructure Total Returns Index -17.66 8234 -- -- -- -- -22.42 6831 CNX Nifty Index (Addl. Benchmark) -9.23 9077 -- -- -- -- -7.89 8839 GS Junior BeES -6.78 9322 4.79 10479 145.23 24523 24.82 75382 21-Feb-03 CNX Nifty Junior Index (Benchmark) -7.35 9265 4.69 10469 148.45 24845 24.69 74660 CNX Nifty Junior Total Returns Index -6.24 9376 5.78 10578 150.79 25079 26.47 84947 CNX Nifty Index (Addl. Benchmark) -9.23 9077 11.14 11114 73.76 17376 19.24 49670 GS PSU Bank BeES -22.99 7701 35.24 13524 112.36 21236 6.79 13381 25-Oct-07 CNX PSU Bank Index (Benchmark) -24 7600 34.46 13446 111.52 21152 5.87 12877 CNX PSU Bank Total Returns Index -22.72 7728 36.24 13624 116.98 21698 7.78 13940 CNX Nifty Index (Addl. Benchmark) -9.23 9077 11.14 11114 73.76 17376 -1.13 9509 GS Hang Seng BeES 2.31 10231 11.56 11156 -- -- 6.33 11347 09-Mar-10 Hang Seng Index (Benchmark) -12.63 8737 10.77 11077 -- -- -1.5 9693 Hang Seng Total Returns Index 3.03 10303 12.86 11286 -- -- 6.99 11494 CNX Nifty Index (Addl. Benchmark) -9.23 9077 11.14 11114 -- -- 1.83 10380
* For GS Liquid BeES returns are based on Gross Dividend P.U.(Inclusive of Distribution Tax) declared by the Fund till May 30, 2008. Actual dividend in the hands of each investor will vary based on category and rate of dividend distribution tax applicable thereon. Returns for all the period are annualized. Returns for less than one year are absolute and more than one year is compounded annualized.
- What are the taxation rules that apply to GS BeES?
Same rules apply as in the case of buying or selling stocks or mutual fund units. Kindly refer the respective Offer Document / Key Information Memorandum.