Mirae launches India's first electric vehicle and new-age auto ETF

Mirae Asset Investment Managers (India) on Thursday announced the launch of India’s first Exchange Traded Fund (ETF) focused on the electric vehicles (EV) and new-age automotive segment.

Mirae Asset Nifty EV and New Age Automotive ETF, an open-ended scheme tracking the Nifty EV and New Age Automotive Total Return Index, 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.

The index aims to track companies participating in emerging segments like electric vehicles, hybrid vehicles, and battery manufacturing across sectors and market cap segments. It also intends to capture initiatives and possibly future disruptions like hydrogen-fuel cells, autonomous vehicles etc.

The New Fund Offer (NFO) for Mirae Asset Nifty EV and New Age Automotive ETF will open for subscription on June 24, 2024 and close on July 5, 2024. The scheme will be managed by Ekta Gala and Akshay Udeshi. In the scheme, the minimum initial investment during NFO will be ₹5,000 with subsequent investments being multiples of ₹1.

The ETF comes three weeks after the National Stock Exchange’s (NSE) index services subsidiary, NSE Indices, launched a new thematic index – Nifty EV & New Age Automotive index. The Nifty EV & New Age Automotive index aims to track the performance of companies which form a part of the EV ecosystem or are involved in the development of new age automotive vehicles or related technology. The launch of the Nifty EV & New Age Automotive index will facilitate creation of products which will create opportunity for asset managers to invest in the electric vehicle and new age automotive market thereby providing an investment vehicle to investors, Mukesh Agarwal, CEO of NSE Indices, said at the time.

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).

“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,” says Swarup Anand Mohanty, vice chairman and CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.

“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,” says Siddharth Srivastava, head-ETF Products, Mirae Asset Investment Managers.

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