India has launched its first Exchange Traded Fund (ETF) specifically focused on Electric Vehicles (EV) and new automotive technologies. Named the ‘Mirae Asset Nifty EV and New Age Automotive ETF,’ this open ended investment scheme was introduced by Mirae Asset Investment Managers. The goal of the ETF is to capitalize on the long-term growth prospects of the EV and new-age automotive sector.
The ETF is designed to follow the Nifty EV and New Age Automotive Total Return Index. This index includes companies that are part of various segments such as Electric Vehicles, Hybrid Vehicles, Battery Manufacturing, and emerging technologies like hydrogen fuel cells and autonomous vehicles.
The range of companies that the ETF targets includes:
- Established EV manufacturers and related component producers.
- Manufacturers of hybrid vehicles, which combine traditional gasoline engines with electric power.
- Firms involved in producing batteries, which are crucial for both electric and hybrid vehicles.
- Companies working on future oriented technologies such as hydrogen fuel cells and autonomous vehicles.
This ETF not only follows the latest trends in the industry but also aligns with significant government initiatives aimed at boosting EV adoption and domestic manufacturing. These initiatives include:
The FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, which is a government program designed to support the purchase and production of electric vehicles in India.
The PLI (Production Linked Incentive) program, which offers financial incentives to attract investment in key sectors, including the automotive and battery production industries.
The New Fund Offer (NFO) for this ETF will open for subscription on June 24, 2024, and close on July 5, 2024. The scheme is managed by Ms. Ekta Gala and Mr. Akshay Udeshi. To invest during the NFO, the minimum initial investment is set at Rs 5,000. Any subsequent investments can be made in multiples of Re 1.
This ETF represents a new opportunity for investors to engage with the growing EV and new automotive technology markets in India, providing a diverse investment option that includes leading companies and innovative future technologies. Through this ETF, investors can potentially benefit from the significant growth and development expected in the EV sector and related industries in the coming years.
