Mutual Funds Shift Gears Towards Electric Vehicle Boom with New Auto-Focused Funds

Mutual funds are accelerating their investments in the burgeoning electric vehicle (EV) sector, launching a range of new schemes aimed at capitalizing on the sector's bull run and increasing EV adoption.

Mirae Asset Mutual Fund is set to introduce the Nifty EV and New Age Automotive ETF on Monday. Similarly, Groww Mutual Fund has filed with the Securities and Exchange Board of India (SEBI) for the same ETF. On the active management side, SBI Mutual Fund rolled out the Automotive Opportunities Fund last month.

Mirae Asset MF highlights that EV adoption is expected to surge due to falling battery prices and strong governmental support, creating vast opportunities across the entire automotive value chain. The new ETFs will track the Nifty EV and New Age Automotive index, launched on May 30, 2024. This index comprises 33 constituents, with Mahindra & Mahindra holding the highest weight at 9.69 percent, followed by Bajaj Auto and Maruti Suzuki at 7.2 percent each. The index also includes companies from various sectors such as information technology, chemicals, capital goods, oil & gas, and consumer services.

“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. Our goal is to provide avenues for long-term capital appreciation while supporting sustainable development in the automotive sector,” stated Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers (India).