Mirae Asset Mutual Fund files draft document with Sebi for Nifty EV & New Age Automotive ETF

Mirae Asset Mutual Fund has filed a draft document with SEBI for regulatory approval to launch India’s first Exchange Traded Fund (ETF) focused on the Electric Vehicles (EV) and New Age Automotive segment. Mirae Asset Nifty EV and New Age Automotive ETF will be an open-ended scheme replicating/tracking Nifty EV and New Age Automotive Total Return Index.This is the first ETF which is set to offer investors with long-term capital appreciation opportunities by investing in equity of companies that are at the forefront of the dynamic and rapidly evolving automotive sector thereby focusing towards sustainable development.

The fund will track the newly launched Nifty EV & New Age Automotive Index, providing investors with a benchmark that truly reflects the innovative and forward-thinking nature of India’s electric vehicle and new age automotive industry. The scheme will be managed by Ekta Gala and Vishal Singh.

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“We believe that companies which are part of disruptive themes like EV hold significant potential for growth especially if they have the first mover advantage in less penetrated markets like India. The long-term potential and opportunity size for EV and several other disruptions in the auto space is huge. Through this product, we want to provide an option for investors to take exposure in a portfolio of such companies,” commented Swarup Anand Mohanty, Vice Chairman & CEO, Mirae Asset Investment Managers (India).

This will be a valuable addition to Mirae’s portfolio of exclusive products centered on both global and domestic themes. With this new offering, Mirae will be able to provide two specialized products dedicated to the Electric Vehicle sector—one targeting global companies involved in EV and New Age Automotive, and the other focusing solely on domestic companies within the same industry, said the press release.

“This product will provide exposure to the current and upcoming ecosystem of EV and other new age automotive segments in India by capturing companies which currently have or are developing products and services in this space. This product will be a good addition to our existing lineup of exclusive products on global and domestic themes,” said Siddharth Srivastava, Head-ETF Products, Mirae Asset Investment Managers (India).

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In addition to targeting leading-edge companies, the fund’s portfolio will also include companies that have received Production Linked Incentives (PLI) in the automobile and battery segments, and those participating in key industry initiatives such as the Society of Manufacturers of Electric Vehicles (SMEV) and the government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative.

Post the approval from SEBI for launch of the fund, the new fund offer (NFO) of the fund will be the sixth such opening this year so far following Mirae Asset Multi Asset Allocation Fund in January, Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF and Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund in February and Nifty MidSmallcap400 Momentum Quality 100 ETF and Nifty MidSmallcap400 Momentum Quality 100 ETF Fund of Fund in May.