Mirae Asset Nifty EV and New Age Automotive ETF: Check details about India's first EV ETF
Mirae Asset Nifty EV and New Age Automotive ETF: Check details about India's first EV ETF
Investment in electric vehicles and new-age automation has been a trend for sometime worldwide. In India, Mirae Asset Investment Managers unveiled the country's 'Mirae Asset Nifty EV and New Age Automotive ETF'. It is an open-ended scheme designed to capitalise on the long-term growth prospects of this dynamic sector. The scheme will track Nifty EV and New Age Automotive Total Return Index.
The fund aims to offer investors with long-term capital appreciation opportunities by investing in equity of companies that are at the forefront of the dynamic and rapidly evolving automotive sector and the entire value chain.
The index will seek to capture companies participating in emerging segments like Electric Vehicles, Hybrid Vehicles, Battery Manufacturing etc. across sectors and market cap segments, but will also intend to capture initiatives and possibly future disruptions like Hydrogen-fuel cell, Autonomous Vehicles etc.
The New Fund Offer (NFO) for Mirae Asset Nifty EV and New Age Automotive ETF will open for subscription on June 24, 2024 and close on July 5, 2024. The scheme will be managed by Ekta Gala and Akshay Udeshi.
Highlights of Mirae Asset Nifty EV and New Age Automotive ETF
> The fund aims to offer investors long term capital appreciation by investing in companies forming part of Nifty EV & New Age Automotive Total Return Index;
> The ETF’s portfolio will seek to capture the entire ecosystem of companies involved in current and emerging disruptive technologies like EV, Hybrid Vehicles, Battery production, Automation etc.
> The ETF will also target companies participating in key government initiatives like FAME and PLI.
> The scheme will invest 95-100% in securities included in the Nifty EV and New Age Automotive Index and 0-5% in money market instruments including tri-party repo/ debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.
> In the scheme, the minimum initial investment during NFO will be Rs 5,000 with subsequent investments being multiples of Re 1.
“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. We aim to provide avenues for long-term capital appreciation while supporting sustainable development in the automotive sector. This ETF underscores our commitment to innovation and aligning investment opportunities with evolving market trends," said Swarup Anand Mohanty, Vice Chairman & CEO, Mirae Asset Investment Managers (India).
“The ETF aims to capture the potential of India’s dynamic automotive industry. By investing in companies leading the charge in EV and new automotive technologies across the value chain, this new ETF will offer investors exposure to the innovative and rapidly evolving ecosystem in this space. With a focus on both global and domestic themes, this product adds value to our lineup of exclusive offerings providing investors with diversified opportunities in the electric vehicle and new-age automotive segment,” said Siddharth Srivastava, Head-ETF Products, Mirae Asset Investment Managers (India).
"Thematic investing is about identifying a long term trend with significant potential and investing in it early so that investor is able to participated in the growth story. We believe electric vehicles and other new age automotive technologies are disrupting and redefining the mobility space. There is potential for players across the value chain and there is significant push by government towards EV and battery Manufacturing. It is in early stages but long term growth potential looks appealing. We believe this the right time to invest in this theme in India from a long term point of view," Srivastava said.
The NFO is the sixth opening this year, after Mirae Asset Multi Asset Allocation Fund in January, Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF in February, and Nifty MidSmallcap400 Momentum Quality 100 ETF in May.
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