ICICI Prudential Launches Nifty EV & New Age Automotive ETF and FOF; Tracking the Nifty EV Index
The minimum application amount for the ETF during the NFO is Rs 1,000, and for the FOF, it is Rs 1,000 during both the NFO and ongoing offer period.
ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty EV & New Age Automotive ETF, an open-ended Exchange-Traded Fund (ETF) tracking the Nifty EV & New Age Automotive Index. In addition, the fund house is introducing the ICICI Prudential Nifty EV & New Age Automotive ETF Fund of Funds (FOF).
The New Fund Offer (NFO) period for the ETF is from March 21, 2025, to April 2, 2025, while the FOF NFO period is from March 28, 2025, to April 10, 2025. The minimum application amount for the ETF during the NFO is Rs 1,000, and for the FOF, it is Rs 1,000 during both the NFO and ongoing offer period.
The investment focus of this scheme is on companies within the rapidly expanding Electric Vehicle (EV) ecosystem and the new-age automotive sector. This includes electric two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, battery manufacturers, component suppliers, raw material providers, and automotive technology firms.
The benchmark for the ETF is the Nifty EV & New Age Automotive Total Return Index (TRI), which tracks the performance of companies operating in this high-growth industry.
Abhijit Shah, Chief Marketing & Digital Business Officer, ICICI Prudential AMC, stated, “Driven by increasing adoption and supportive government policies, this industry is projected to grow at an accelerated pace. By investing in the Nifty EV & New Age Automotive Index, investors can gain a diversified exposure to India’s rapidly evolving EV sector and can capitalize on the global shift towards sustainable mobility.”
Why EV Matters?
Electric vehicles are at the forefront of global automotive innovation, driven by the need for sustainable mobility solutions. Data from the Tesla Impact Report 2024 indicates that EV adoption is accelerating, reducing carbon emissions and dependence on fossil fuels. With improvements in battery technology and supportive government policies, the EV market is expected to witness significant growth in the coming years.
Why Invest in the Nifty EV & New Age Automotive ETF or FOF?
Investing in this ETF or FOF offers multiple advantages:
- Access to a High-Growth Sector: The EV and new-age automotive industry is expanding rapidly, supported by government incentives and technological advancements.
- Diversified Portfolio: The scheme provides exposure across the entire EV value chain, including automakers, component makers, software providers, and original equipment manufacturers (OEMs).
- Capitalising on the Global Shift Towards Sustainability: The ETF aligns with the global transition towards sustainable mobility, focusing on advancements in EV technology and fuel efficiency.
- Cost-Efficiency: The ETF offers a passive, low-cost investment approach that mirrors the performance of the underlying index.
- Convenience of FOF: Investors without a Demat account can access the ETF through the FOF, benefiting from Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP).
Government Support for the EV Sector
India’s EV industry has received strong policy support, including initiatives from the Ministry of New and Renewable Energy (MNRE) and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) I & II schemes.
The government has also introduced Production Linked Incentive (PLI) schemes worth Rs 1.2 lakh crore for EV manufacturing, a Battery Swapping Policy to enhance charging infrastructure, and reductions in custom duties on EV imports. These measures are expected to boost investment and accelerate the adoption of electric mobility in India. (Source: ASSOCHAM Report, September 2024)
By investing in this scheme, investors gain access to a sector poised for long-term growth, supported by technological advancements, policy initiatives, and rising consumer adoption of electric vehicles.
Disclaimer: The article is for informational purposes only and not investment advice.