The subscription period for the Mirae Asset Nifty EV and New Age Automotive ETF’s New Fund Offer (NFO) will begin on June 24 and end on July 5. According to a release from Mirae Asset Investment Managers (India), the goal of the EV-focused fund is to provide investors with long-term capital appreciation opportunities by investing in equities of businesses at the forefront of the dynamic and quickly expanding automotive sector and the full value chain.
The Nifty EV and New Age Automotive Index stocks are the main focus of the Mirae Asset Nifty EV and New Age Automotive ETF, which has an indicative allocation of 95% to 100%. The high-risk profile of this strategic allocation is intended to capitalise on the potential profits from the emerging electric car and new-age automotive industries. Additionally, the fund may invest up to 5% in low-to-medium-risk assets, money market instruments, debt securities, or units of domestic mutual funds’ debt/liquid schemes.
Investment Goal for Mirae Asset Mutual Fund
The Nifty EV New Age Automotive Index includes businesses and industries that are essential to electric vehicles as well as new automotive technologies including automation, fuel cells, and hybrid cars.
This index foresees future advances like hydrogen fuel cells and autonomous vehicles and covers current disruptions like electric and hybrid vehicles and battery manufacturing.
The index adheres to a balanced exposure strategy, allocating up to 40% of its total weight during rebalancing to auto manufacturers and the remaining 60% to industries such as auto ancillaries, batteries, battery chemicals, automation, and connectivity.
Furthermore, firms participating in significant government programmes such as PLI (Production Linked Incentive) and FAME (Faster Adoption Manufacturing of Electric Vehicles) in the pertinent industries are included in the index.
