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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

CPSE ETF (managed by Goldman Sachs Asset Management (India) Private Limited - This ETF tracks the CPSE index: The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the CPSE Index, by investing in the Securities which are constituents of the CPSE 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.

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 BeES
5%
(i) GS PSU Bank BeES, (ii) GS Shariah BeES and (iii) GS Infra BeES
3%
GS Liquid BeES
2%

 


 

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:

CPSE ETF - 100,000 units and in multiples thereof
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.

 
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.