Mutual Funds Embrace Electric Vehicle Sector, Launch New Auto Funds

Read Time:1 Minute, 33 Second

Mutual funds (MFs) are capitalizing on the current bullish trend in the automotive sector and the increasing adoption of electric vehicles (EV) by launching new schemes. Mirae Asset MF is set to introduce the Nifty EV and New Age Automotive ETF, slated for launch on Monday, while Groww MF has also filed with the Securities and Exchange Board of India (Sebi) for a similar ETF.

On the active management front, SBI MF recently rolled out the Automotive Opportunities Fund in the previous month. Mirae Asset MF highlights that the surge in EV adoption is driven by decreasing battery costs and government initiatives, which are creating growth prospects across the entire automotive value chain.

The upcoming ETFs will track the Nifty EV and New Age Automotive index, initiated on May 30, 2024, comprising 33 constituents. Mahindra & Mahindra holds the largest weight at 9.69%, followed by Bajaj Auto and Maruti Suzuki each with 7.2%. Besides automobile stocks, the index includes companies from sectors such as information technology (IT), chemicals, capital goods, oil & gas, and consumer services.

Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers, emphasized the ETF’s launch as India’s first focusing on EVs and the New Age Automotive sector. He stated, “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.”

Auto stocks have shown robust performance recently, with the Nifty Auto index gaining 22% over the past three months and marking a 36% increase year-to-date in 2024. This bullish sentiment reflects growing investor confidence in the automotive sector, particularly in light of advancements in electric and new age automotive technologies.

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %
Previous post Argentina vs. Canada Preview: Predictions, Odds, and Match Time for 2024 Copa America, June 20 – Insights from Leading Soccer Analyst
Next post “Fingers Crossed”: Fans Send Prayers as NHRA Legend John Force Suffers Horrifying Crash