R*Shares Shariah BeES

R*Shares Shariah BeES is the only Shariah-compliant fund listed on the National Stock Exchange. Launched in April 2009 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 R*Shares Shariah BeES by investing in securities which are constituents of R*Shares Shariah BeES in the same proportion as in the index.

At present the R*Shares Shariah BeES comprises of 19 constituents as on 31.01.2016 and represents about 30.26% of the total market capitalization of the NSE. 

Exchange Traded Funds are essentially Index Funds that are listed on traded on exchanges like stocks. ETFs enable investors to gain broad exposure to entire stock markets with relative ease, on a real-time basis and at a lower cost than many other forms of investing.

ETFs offer several advantages to investors:

  • Can easily be bought / sold like any other stock on the exchange
  • Can be bought / sold anytime during market ours at a price close to the actual NAV of the Scheme.
  • Minimum investment is one unit
  • Enjoy flexibility of a stock and diversification of an index fund (Passive Fund)
  • Low expense ratio

R*Shares ShariahBeES derives its liquidity first from trading of the units in the secondary market and secondly through the in-kind creation / redemption process with the fund in creation unit size. The minimum lot for creation / redemption of basket directly with Fund is 10,000 Units and in multiples thereof.

Investment eligible for Tax Savings 

R*Shares Shariah BeES is the only Shariah-compliant tax savings scheme designed under Rajiv Gandhi Equity Savings Scheme (RGESS) exclusively for the first time individual investors in securities market, whose gross total income for the year is below RS.12 lakhs. The investor would get under Section 80CCG of the Income Tax Act, a 50% deduction of the amount invested during the year up to a maximum investment of Rs.50,000 per financial year, from his / her taxable income for that year, for three consecutive assessment years.

This product is suitable for investors who are seeking long-term capital appreciation and also can be used as the only Shariah-complaint tax-savings instrument under RGESS in case of new investors.