Buying Nifty futures for long term

[sanjosedesi]

I think yes, you do get dividend on them. You certainly get margin against them (at least with Sharekhan).

dividend ... NO.

The ETFs have a trading price and I think like the mutual funds they have their own NAV. The NAV should be adjusted to account for dividends received from the companies and eventually the traded price will change to reflect the revised real value. However, I have not seen it happen, probably because the expenses eat away the dividend. Anyway, there is never any dividend credited to your account.

 

[prst]

dividend ... NO.

The ETFs have a trading price and I think like the mutual funds they have their own NAV. The NAV should be adjusted to account for dividends received from the companies and eventually the traded price will change to reflect the revised real value. However, I have not seen it happen, probably because the expenses eat away the dividend. Anyway, there is never any dividend credited to your account.

one am aware of is from Goldman sachs..
its called Niftybees.
its price is one tenth of the current nifty price.
u can buy multiple units and hold

 

[paulmathewmac]

Dear at145,

I do not think, hoping for Nifty to gain 1,500 points in the next 6 months is a good strategy. It is only as good as buying lottery tickets and hoping you'd win.
You will have to strike upon a system whereby you have a reasonable chance to anticipate where Nifty will stand, may be 2 days from now, or 2 weeks from now or even 6 months from now. How to find that system, I can not advice you about. It's your search.

If you have nothing to back your expectation that Nifty will move 1,500 points up in 6 months, I'd suggest you invest only a minimum amount so that if the move goes against you, you will only lose an amount that you can afford to lose.

Best wishes.

 

[bpr]

I am holding some Niftybees and recently I saw some dividends credited to my bank account but I also thought earlier they are reinvested back to shares.
May be they change it recently I will chk again.

Holding long term nifty futures biggest problem will be roll over cost from month to month and then the futures premium erratic behavior will also eat away your money.

Again how much below you can go and how much far you can average and when to exit are some of the question that you have to answer.
If you decide to average then the draw down will increase exponentially if it goes down even further.

 

[shankie14]

I am holding some Niftybees and recently I saw some dividends credited to my bank account but I also thought earlier they are reinvested back to shares.
May be they change it recently I will chk again.

Holding long term nifty futures biggest problem will be roll over cost from month to month and then the futures premium erratic behavior will also eat away your money.

Again how much below you can go and how much far you can average and when to exit are some of the question that you have to answer.
If you decide to average then the draw down will increase exponentially if it goes down even further.

Sir - just checking - i thought that ETF's do not give dividends - are you sure you got dividend or has the policy changed?

 

[bpr]

Sir - just checking - i thought that ETF's do not give dividends - are you sure you got dividend or has the policy changed?

sorry to reply late.
I checked my bank statement.
Yes there is a credit on my bank account with description like this.
"NEFT CR-SN00515Q0023757-GSMF NIFTYBEES"

 

[drsambu123]

Mr at 145
If u have deep pockets u still can consider nifty future contract buying.U buy 1 lot nifty around 30000. keep Rs10000 to 15000 for rolling over in case market falls. But if market falls more than 10 % ur entire margin will vanish.

to tacke that u can buy 1 put around -200 (4%)points in nifty with small premium of Rs.500-600 as insurance.

So ur max loss in particular month is limited to put premium + 4% loss(12000+600)
At the time of expiry roll over with buffer fund.....


If that cycles repeats for couple of months we need max of 12600 everymonth to maintain 1 lot nifty future. So practically it wont happen every month.. but theoritically it may happen...
If u r ready with deep pockets u can consider this