Aiming for the Future of Mobility

The new ETF seeks to capture the growth potential of companies involved in emerging segments such as Electric Vehicles, Hybrid Vehicles, and Battery Manufacturing. Moreover, it also intends to include businesses that are pioneering future automotive innovations like Hydrogen-fuel cells and Autonomous Vehicles. This broad approach ensures that the ETF covers a wide spectrum of the automotive industry’s advancements and disruptions.

Key Details of the NFO

The New Fund Offer (NFO) for the Mirae Asset Nifty EV and New Age Automotive ETF will open for subscription on June 24, 2024, and close on July 05, 2024. This period gives investors a window to partake in this unique investment opportunity. The scheme is managed by Ms. Ekta Gala and Mr. Akshay Udeshi, both seasoned professionals in the field.

For those interested in investing, the minimum initial investment required during the NFO period is Rs 5,000 (Rupees Five Thousand), with subsequent investments to be made in multiples of Re 1. This accessibility ensures that a broad range of investors can participate in the fund.

Vision and Mission

Speaking about the launch, Mr. Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers (India) Pvt. Ltd., highlighted the significance of this ETF. “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. This ETF underscores our commitment to innovation and aligning investment opportunities with evolving market trends,” he said.

Mr. Siddharth Srivastava, Head-ETF Products at Mirae Asset Investment Managers (India) Pvt. Ltd., added, “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.”

A Comprehensive Portfolio

The ETF’s portfolio will include a mix of companies that have received Production Linked Incentives (PLI) in the automobile and battery segments. It will also feature companies participating in industry initiatives such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME). This diverse inclusion ensures that the fund captures a comprehensive snapshot of the industry’s progress and potential.

Why Invest in the EV and New Age Automotive Sector?

The Electric Vehicle and New Age Automotive sector represent one of the most exciting and rapidly evolving areas of the global economy. As the world shifts towards more sustainable and environmentally friendly modes of transportation, the demand for electric and hybrid vehicles continues to rise. This shift is driven by various factors, including government policies, technological advancements, and increasing consumer awareness about the environmental impact of traditional vehicles.

Investing in this sector provides a unique opportunity to be part of a significant global transition. Companies involved in this industry are not only working on the vehicles themselves but also on the essential infrastructure and technologies that support them. This includes battery manufacturing, charging infrastructure, and advancements in autonomous driving technologies.

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Global and Domestic Themes

The Mirae Asset Nifty EV and New Age Automotive ETF is designed to capture both global and domestic themes in the automotive sector. This means that investors will benefit from the growth of the EV industry not just in India but also around the world. The global perspective ensures that the ETF is well-positioned to take advantage of international trends and innovations, while the domestic focus ensures that it captures the specific opportunities and developments within India.

The Importance of Innovation

Innovation is at the heart of the automotive industry’s transformation. Companies that are leading the way in electric vehicles, hybrid technology, and other new-age automotive solutions are driving significant changes in how we think about transportation. This ETF aims to include those companies that are not only keeping up with the current trends but are also at the forefront of creating future technologies.

Sustainable Development

Supporting sustainable development is a key goal of the Mirae Asset Nifty EV and New Age Automotive ETF. By investing in companies that are contributing to a more sustainable future, the ETF aligns itself with broader environmental goals and the global push towards reducing carbon emissions. This focus on sustainability is not just beneficial for the planet but also represents a long-term investment opportunity as the world moves towards greener technologies.

Production Linked Incentives and Industry Initiatives

One of the unique aspects of this ETF is its inclusion of companies that have received Production-linked Linked Incentives (PLI) from the government. These incentives are part of the government’s efforts to boost manufacturing and innovation in critical sectors, including the automotive and battery segments. By including these companies, the ETF ensures that investors benefit from government-supported growth initiatives.

Additionally, the ETF will include companies participating in industry initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. These initiatives are designed to promote the adoption of cleaner transportation solutions and support the development of necessary infrastructure.

The Role of Battery Manufacturing

Battery manufacturing is a crucial component of the EV and new-age automotive sector. Batteries are the heart of electric vehicles, and advancements in battery technology are key to the industry’s growth. The ETF will include companies that are leading in battery manufacturing, ensuring that investors benefit from this critical aspect of the EV ecosystem.

Hydrogen-Fuel Cells and Autonomous Vehicles

While electric vehicles are currently at the forefront of the automotive revolution, other technologies like hydrogen fuel cells and autonomous vehicles are also making significant strides. The ETF aims to capture companies working on these cutting-edge technologies, providing investors with exposure to potential future disruptions in the automotive sector.

The launch of the Mirae Asset Nifty EV and New Age Automotive ETF marks a significant milestone in the Indian investment landscape. It provides a unique opportunity for investors to participate in the dynamic and rapidly evolving automotive sector. With a focus on long-term capital appreciation, sustainability, and innovation, this ETF is well-positioned to capture the growth potential of the electric vehicles and new-age automotive industry.

Investors looking to diversify their portfolios and gain exposure to one of the most exciting sectors of the global economy should consider the Mirae Asset Nifty EV and New Age Automotive ETF. By investing in companies leading the charge in EV and new automotive technologies, this ETF offers a gateway to the future of mobility and sustainable development.

The NFO opens on June 24, 2024, and closes on July 05, 2024. Don’t miss the chance to be part of this groundbreaking investment opportunity.

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