Mirae Asset Mutual Fund introduces new ETF - Mirae Asset Nifty EV and New Age Automotive ETF

Mirae Asset Mutual Fund is launching a new ETF called the Mirae Asset Nifty EV and New Age Automotive ETF. This ETF aims to track the Nifty EV and New Age Automotive Index, which means it will invest in a basket of companies involved in electric vehicles, hybrid vehicles, battery manufacturing, and other new technologies in the automotive sector. The idea is that by investing in this ETF, your returns will reflect how well these companies perform.

There's no guarantee of how much you'll make, but the ETF does offer the benefit of diversification across this growing industry. The investment starts at ₹5,000 and the subscription window is open from June 24 to July 5, 2024.

Why Invest in Mirae Asset’s Automotive ETF?

The Nifty EV New Age Automotive Index seeks to capture the entire ecosystem of companies and industries involved in Electric Vehicles and other new-age automotive developments like hybrid vehicles, fuel cells, automation etc. The index aims to capture not only current automotive disruptions like Electric Vehicles, Hybrid Vehicles, Battery Manufacturing etc. but also initiatives and possibly future disruptions like Hydrogen fuel cells, Autonomous Vehicles etc. The total exposure to automobile manufacturers will be capped at 40 at the time of index rebalancing. Hence 60 exposures will be towards segments like auto ancillaries, batteries, battery chemicals, automation and connectivity, etc.

The Index will also have exposure to companies that are part of FAME (Faster Adoption Manufacturing of Electric Vehicles) and PLI (Production linked Incentive) initiatives in the concerned space The index aims to provide well-diversified exposure to large, mid, and small-cap companies where top stock from automobile manufacturing segment is capped at 8% and from other segments are capped at 4%.

Mirae Asset Nifty EV and New Age Automotive ETF

The investment objective of the Mirae Asset Nifty EV and New Age Automotive ETF is to generate returns, before expenses, that are commensurate with the performance of the Nifty EV and New Age Automotive Index, subject to tracking error. The Scheme does not guarantee or assure any returns and there is no assurance that the investment objective will be achieved.

Benchmark

Risk-o-meter

Funds Allocation

Who Should Invest?

This NFO of Mirae Asset Nifty EV and New Age Automotive ETF is suitable for investors who are seeking returns that are commensurate with the performance of Nifty EV and New Age Automotive Total Return Index, subject to tracking error over the long term and investments in equity securities covered by Nifty EV and New Age Automotive Total Return Index.

Peer Mutual Fund Schemes

Who Manages the Scheme?

Conclusion

The Mirae Asset Nifty EV and New Age Automotive ETF provide a promising investment opportunity in the rapidly evolving automotive sector, emphasizing electric and hybrid technologies. Managed by experienced professionals, the ETF offers diversified exposure to both established and emerging companies. It is an attractive option for investors seeking long-term returns aligned with the industry's advancements and innovations.