Last Day to Apply for India’s First EV Fund: Complete Details Inside!

The last day to apply for the Nifty EV and New Age Automotive ETF is July 5, 2024, which commenced on June 24.

Mirae Asset launched its new open-ended scheme, the Mirae Asset Nifty EV and New Age Automotive ETF, with a New Fund Offer (NFO) that began on June 24, 2024. This innovative ETF aims to replicate and track the performance of the Nifty EV and New Age Automotive Total Return Index. Investors can participate in this NFO until July 5, 2024. Following a brief pause, the scheme will reopen for continuous sale and repurchase on July 11, 2024. Post-allotment, the ETF is slated to be listed on both the NSE and BSE within five business days, enhancing accessibility for investors eager to capitalize on the growing electric vehicle and new-age automotive sectors. The ETF is managed by Ms. Ekta Gala and Mr. Vishal Singh, who oversee the portfolio to align with its investment objectives and risk parameters.

Investment Objective:

The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty EV and New Age Automotive Total Return Index, subject to tracking error. The scheme does not guarantee or assure any returns, and there is no assurance that the investment objective of the scheme will be achieved.

Application Details:

Minimum Application Amount & Minimum Additional Application Amount During NFO Period: Rs. 5,000 per application, with subsequent investments in multiples of Re. 1. Units will be allotted in whole figures, with any balance amount refunded.

Asset Allocation:

The Mirae Asset Nifty EV and New Age Automotive ETF focuses on investing primarily in securities included in the Nifty EV and New Age Automotive Index, with an indicative allocation of 95 per cent to 100 per cent. This strategic allocation reflects a very high-risk profile aimed at capturing potential returns from the dynamic electric vehicle and new-age automotive sectors. The fund may also allocate up to 5 per cent in low to medium-risk instruments such as money market instruments, debt securities, or units of debt/liquid schemes of domestic mutual funds.

Here's why considering this ETF could be advantageous for you:

The Nifty EV New Age Automotive Index comprehensively encompasses companies and sectors integral to Electric Vehicles and emerging automotive technologies such as hybrid vehicles, fuel cells, and automation.

This index not only covers current disruptions like Electric and Hybrid Vehicles and Battery Manufacturing but also anticipates future innovations such as Hydrogen fuel cells and Autonomous Vehicles.

The index maintains a balanced exposure strategy: up to 40 per cent in automobile manufacturers during rebalancing, with the remaining 60 per cent allocated to sectors like auto ancillaries, batteries, battery chemicals, automation, and connectivity.

Additionally, the index includes companies involved in key government initiatives like FAME (Faster Adoption Manufacturing of Electric Vehicles) and PLI (Production Linked Incentive) in the relevant sectors.

By design, the index offers diversified exposure across Large-Cap, Mid-Cap, and Small-Cap companies. It limits individual stock exposure within the automobile manufacturing segment to 8 per cent, while other segments are capped at 4 per cent.

Investors seeking broad exposure to the evolving landscape of electric and new-age automotive technologies may find the Mirae Asset Nifty EV and New Age Automotive ETF a compelling addition to their portfolio strategy. In India, the EV sector is buzzing, and EV stocks have delivered multibagger returns to their shareholders, so it's better to keep this on the watchlist.

Disclaimer: The article is for informational purposes only and not investment advice.