ICICI Pru Nifty Auto ETF

About ICICI Prudential Nifty Auto ETF

• ICICI Prudential Nifty Auto ETF is an open-ended scheme offered by the ICICI Prudential Mutual Fund House.
• It invests in stocks of leading auto companies in India.
• The scheme was launched on January 12, 2022.
• ICICI Prudential Nifty Auto ETF Fund has Assets Under Management (AUM) of ₹80 crore as of June 30, 2024.
• The ETF symbol of ICICI Prudential Nifty Auto ETF is AUTOIETF.
• Nishit Patel is the fund manager.
• Retail investors can buy the ETF units by placing buy orders through their demat account with a registered broker.
• One can trade the ETF units at the prevailing price during the usual market hours, just like equity stocks. With ease of access, the scheme provides liquidity to your investments.

Investment Objective & Benchmark:

• ICICI Prudential Nifty Auto ETF's investment objective is to provide returns that closely mirror the performance of equity stocks part of the underlying index.
• The scheme is benchmarked against the Nifty Auto Index, designed to reflect the behaviour and performance of the Indian automobile sector.
• With the growing economy and rising income level, the demand for cars, two-wheelers and other vehicles has been on the rise in India, positioning the auto sector for an upward growth trajectory.
• The ETF offers diversification of funds within the auto sector.
• It is a cost-effective way to invest in the Indian auto sector without having to buy individual stocks.
• The riskometer level of the ICICI Prudential Nifty Auto ETF is rated as very high, indicating a significant risk associated with the fund.
• The scheme is suited for investors looking at a long-term goal of wealth creation.

Asset Allocation and Portfolio Composition:

• The asset allocation of the ICICI Prudential Nifty Auto ETF is as follows: 99.9% in equity, indicating that nearly all of the fund's assets are invested in stocks, and 0.1% in cash and cash equivalents, which are held in liquid forms such as cash or short-term money market instruments to provide liquidity and manage fund expenses.
• The ETF has allocated over 79% of the available funds to the automobile sector, 17.74% to auto components and the remaining 2.9% to agricultural commercial and construction vehicles.
• Following a growth-oriented approach, the scheme invests in funds across companies with different market capitalisations – 46.61% in giant-cap, 20.73% in large-cap, 23.60% in mid-cap, 8.86% in small-cap and 0.19% in tiny-cap companies.
• The top 10 company holdings constitute 83.93% of the fund’s asset allocation as of July 30, 2024.

Here’s a list of 10 company holdings in the ETF:

• M&M: 22.26%
• Tata Motors: 16.09%
• Maruti Suzuki: 13.67%
• Bajaj Auto: 8.52%
• Hero MotoCorp: 5.63%
• Eicher Motors: 5.37%
• TVS Motor: 4.65%
• Samvardhana Motherson: 4.21%
• Bharat Forge: 3.5%
• Tata Motors-DVR: 2.93%

The ETF has delivered a return of 66.67% in the last one year and 36.48% CAGR since its inception, as of July 31, 2024.