On Tuesday, the Mirae Asset Nifty EV and New Age Automotive ETF, India’s innovative Exchange Traded Fund (ETF) focused on the Electric Vehicles (EV) and New Age Automotive sector, was officially listed on the stock market. The bell ringing ceremony on listing was attended by Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers (India), along with other officials of the fund house and the National Stock Exchange (NSE).
According to Mohanty, “Mirae Asset Nifty EV & New Age Automotive ETF aims to provide avenues for long-term capital appreciation while supporting sustainable development in the automotive sector.” This ETF is designed to track the Nifty EV and New Age Automotive index, which seeks to capture companies engaging in the emerging segments of Electric Vehicles, Hybrid Vehicles, and Battery Manufacturing across various sectors and market cap segments. Furthermore, it will also seek to capture initiatives and potential future disruptions like Hydrogen-fuel cell and Autonomous Vehicles.
Mohanty also highlighted the immense potential of the electric vehicle market, stating that “The electric vehicle market is poised for exponential growth. With significant investments in infrastructure and a growing focus on sustainability, the prospects of the Indian EV market are encouraging. The listing on BSE and NSE is a watershed moment for investors as it provides an opportunity to them to participate in this transformative journey.”
The New Fund Offer (NFO) for Mirae Asset Nifty EV and New Age Automotive ETF ran from June 24, 2024 to July 05, 2024. As of the recent market close, the fund’s market cap stood at Rs 90 crore. With its first mover advantage in the industry, the ETF aims to offer investors long-term capital appreciation opportunities by investing in equity of companies at the forefront of the dynamic and quickly evolving automotive sector and the entire value chain.
In addition to investing in leading-edge companies, the ETF’s portfolio will also include companies that have received Production Linked Incentives (PLI) in the automobile and battery segments, and those who participated in industry initiatives such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME).
The listing of the Mirae Asset Nifty EV and New Age Automotive ETF on the stock exchanges is a significant development in India’s financial market. It offers investors a unique opportunity to be a part of the country’s growing electric vehicle and new age automotive industry, while also contributing to the sustainable development of the automotive sector.
Overall, the introduction of India’s first Electric Vehicle fund on the bourse is a significant step towards the country’s transition to sustainable and eco-friendly transportation. The ETF listing marks a milestone in the investment opportunities available for individuals looking to contribute to the advancement of the electric vehicle and automotive sectors while aiming for potential long-term financial growth.