Mirae Asset Investment Managers (India) recently filed a preliminary document with the capital markets regulator SEBI seeking approval to introduce India’s pioneering Exchange Traded Fund (ETF) concentrating on the Electric Vehicles (EV) and New Age Automotive sector.
This ETF will be groundbreaking, providing investors with opportunities for long-term capital appreciation by investing in equity of companies leading the charge in the dynamic and swiftly evolving automotive industry, with a focus on sustainable development.
It will be tied to the newly launched Nifty EV & New Age Automotive Index, offering investors a benchmark that authentically mirrors the innovative and forward-looking essence of India’s electric vehicle and new age automotive landscape.
Mirae aims to diversify its offerings with this launch, providing two specialized products tailored to the Electric Vehicle sector—one targeting global players involved in EV and New Age Automotive, and another solely focused on domestic companies within the same industry.
The ETF’s portfolio will encompass companies that have secured Production Linked Incentives (PLI) in the automobile and battery segments, along with participants in crucial industry initiatives like the Society of Manufacturers of Electric Vehicles (SMEV) and the government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative. This strategic positioning ensures that the ETF is poised to benefit from governmental policies and incentives fostering the growth of the EV sector.
Siddharth Srivastava, Head-ETF Products at Mirae Asset Investment Managers (India), remarked, “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.”
Swarup Anand Mohanty, Vice Chairman & CEO of Mirae Asset Investment Managers (India), emphasized, “We believe that companies that 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.”
Following SEBI’s clearance for the NFO launch, this marks the sixth launch this year by Mirae Asset Investment Managers, following Mirae Asset Multi Asset Allocation Fund in January, Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF, Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund in February, and Nifty MidSmallcap400Momentum Quality 100 ETF, and Nifty MidSmallcap400Momentum Quality 100 ETF Fund of Fund in May.