Mirae Asset Mutual Fund has launched India’s first exchange traded fund (ETF) focused on the electric vehicles (EV) and new age automotive segment.
The New Fund Offer (NFO) for ‘Mirae Asset Nifty EV and New Age Automotive ETF’, an open-ended scheme replicating ‘Nifty EV and New Age Automotive Total Return Index’, will open for subscription on June 24 and close on July 5, 2024.
The EV-focused 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, Mirae Asset Investment Managers (India) said in a release.
Key Highlights of Mirae Asset Nifty EV and New Age Automotive ETF
- India’s first fund focused on the EV and New Age Automotive segment;
- It 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.
In the scheme, which will be managed by Ekta Gala and Akshay Udeshi, the minimum initial investment during NFO will be Rs 5,000 with subsequent investments being multiples of Re 1.
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Announcing the NFO, Swarup Anand Mohanty, Vice Chairman & CEO, Mirae Asset Investment Managers (India) Pvt Ltd, said, “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.
Siddharth Srivastava, Head-ETF Products, Mirae Asset Investment Managers (India), added, “This product 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.”
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In addition to targeting leading-edge companies, the ETF’s portfolio will also include companies that have received Production Linked Incentives (PLI) in the automobile and battery segments, and those who participated in industry initiatives such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME).
