Mirae Asset Investment Managers (India) Pvt. Ltd. has taken a pioneering step in India’s financial markets by introducing the country’s first Exchange Traded Fund (ETF) focused exclusively on the Electric Vehicles (EV) and New Age Automotive sector. This new ETF, named ‘Mirae Asset Nifty EV and New Age Automotive ETF,’ is designed to track the performance of the Nifty EV and New Age Automotive Total Return Index. It aims to provide investors with opportunities for long-term capital appreciation by investing in companies leading innovation in electric vehicles, hybrid vehicles, battery manufacturing, and potential future disruptions such as hydrogen-fuel cell technologies and autonomous vehicles.
Fund Objectives and Strategy:
The Mirae Asset Nifty EV and New Age Automotive ETF is an open-ended scheme that seeks to capitalize on the growth potential within India’s dynamic automotive industry. Managed by Ekta Gala and Akshay Udeshi, the fund will strategically allocate investments across various sectors and market capitalization segments. Its primary goal is to offer investors exposure to companies involved in the entire value chain of electric and new age automotive technologies.
Investment Opportunity and Market Potential:
This ETF launch comes at a pivotal time when the global automotive landscape is undergoing rapid transformation towards sustainable mobility solutions. By focusing on companies at the forefront of this transition, Mirae Asset aims to cater to investor demand for thematic investments aligned with environmental sustainability and technological innovation.
New Fund Offer (NFO) Details:
The Mirae Asset Nifty EV and New Age Automotive ETF’s NFO will be open for subscription from June 24, 2024, to July 05, 2024. Interested investors can participate with a minimum initial investment of Rs 5,000 during the NFO period, with subsequent investments allowed in multiples of Re 1. This accessibility aims to democratize access to thematic investments in the rapidly growing EV and new age automotive sectors.
Strategic Vision and Leadership Insights:
Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers (India) Pvt. Ltd., expressed confidence in the ETF’s potential to harness India’s innovation prowess in automotive technologies. He emphasized the role of sustainable development and long-term capital appreciation in shaping the investment strategy behind the new fund.
Management Perspective and Market Dynamics:
Siddharth Srivastava, Head of ETF Products at Mirae Asset Investment Managers (India) Pvt. Ltd., elaborated on the fund’s comprehensive approach to capturing opportunities in India’s automotive sector. He highlighted the ETF’s focus on both domestic and global themes, aiming to provide diversified exposure to companies benefiting from regulatory incentives and industry initiatives like the Production Linked Incentives (PLI) and FAME scheme.
Portfolio Inclusions and Sectoral Focus:
In addition to companies directly involved in EV manufacturing and battery technology, the ETF will consider firms participating in future-forward technologies such as hydrogen-fuel cells and autonomous vehicles. This broad sectoral approach aims to mitigate risks while maximizing returns in a rapidly evolving market environment.
Mirae Asset’s launch of India’s first ETF dedicated to the Electric Vehicles and New Age Automotive sector represents a significant milestone in the financial landscape. It underscores the firm’s commitment to innovation and thematic investing, offering investors a strategic avenue to capitalize on the transformative changes sweeping the automotive industry. As India accelerates its transition towards sustainable mobility solutions, this ETF is poised to play a crucial role in shaping the future of investments in the EV and new age automotive sectors, catering to both retail and institutional investors seeking growth and diversification in their portfolios.
(With inputs from agencies)
