India's first EV and new-age automotive ETF debuts next week
What's the story
Mirae Asset Mutual Fund has declared the launch of India's first Exchange Traded Fund (ETF) dedicated to electric vehicles (EV) and the new-age automotive sector. Named Mirae Asset Nifty EV and New Age Automotive ETF, this open-ended fund will mimic the Nifty EV and New Age Automotive Total Return Index. The fund's primary aim is to offer investors long-term capital appreciation chances, by investing in equity of companies leading the fast-evolving automotive sector and its entire value chain.
Portfolio composition
ETF to include companies from emerging segments
The index tracked by the ETF will include firms from emerging areas like electric vehicles, hybrid cars, battery manufacturing, and more. It will also cover potential future disruptions such as hydrogen-fuel cell and autonomous vehicles. The New Fund Offer (NFO) for Mirae Asset Nifty EV and New Age Automotive ETF, will open for subscription on June 24, and close on July 5. The scheme will be handled by Ekta Gala and Akshay Udeshi.
Insights
Mirae Asset MF leaders highlight unique investment opportunity
Swarup Anand Mohanty, Vice Chairman and CEO of Mirae Asset Investment Managers (India), stated, "With the launch of India's first ETF focused on the electric vehicles and new age automotive segment, we aim to offer investors a unique opportunity to participate in the future of mobility." The minimum initial investment during NFO will be ₹5,000, and subsequent investments will be multiples of ₹1.
Industry potential
ETF to capture potential of India's rising automotive industry
Siddharth Srivastava, Head of ETF Products at Mirae Asset Investment Managers (India), emphasized that the product aims to capture the potential of India's surging automotive industry. "By investing in companies at the forefront of EV and new automotive technologies, this ETF provides exposure to an innovative and rapidly evolving ecosystem," Srivastava explained. The ETF's portfolio will also comprise entities benefiting from Production Linked Incentives (PLI) in the battery and automobile segments.