New Investment Opportunities: Groww Nifty EV & New Age Automotive ETF and Invesco India Manufacturing Fund
Image: Groww
Image courtesy: The Indian Express
Groww has launched two exciting new fund offers (NFOs): the Groww Nifty EV & New Age Automotive ETF and the Groww Nifty EV & New Age Automotive ETF Fund of Funds (FOF).
Key Details:
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Summary
Why Invest?
India’s electric vehicle market is experiencing substantial growth, underscoring a shift towards sustainability and innovation in transportation. Sales of EVs exceeded 1.7 million units in FY 2024, marking a significant increase.
Investing in these funds allows you to participate in this growth trend, as both funds track the Nifty EV & New Age Automotive Index.
The Growing EV Market
India is on a path to sustainability, with the transportation sector being a significant contributor to the country’s carbon emissions, accounting for 13.5%. The transition to electric vehicles is a critical step in reducing these emissions.
The government’s strong support for the EV sector is evident in policies promoting EV adoption and infrastructure development.
In 2023, EV sales nearly doubled, reaching 2% of total passenger vehicle sales, indicating a promising growth trajectory for the sector.
Varun Gupta, CEO of Groww Asset Management Ltd, said,
"With the rapid growth in the electric vehicle sector, these new funds aim to offer investors opportunities to benefit from this dynamic and evolving industry. Our ETF and FOF are specifically designed to help investors capitalise on the potential future of electric mobility and related technologies."
About the Groww Nifty EV & New Age Automotive ETF
This exchange-traded fund (ETF) is designed to provide long-term capital appreciation by investing in the Nifty EV & New Age Automotive Index.
The ETF aims to replicate the index’s performance by holding the same proportion of the constituent stocks.
This approach helps investors gain exposure to a diverse range of companies involved in EV manufacturing, battery production, charging infrastructure, and other related areas.
The ETF offers a straightforward way to invest in the EV sector, but it's important to note that achieving the investment objective is subject to tracking errors and market conditions.
Name of the schemeT | Groww Nifty EV & New Age Automotive ETF |
Scheme Type | An open-ended scheme replicating/tracking Nifty EV and New Age Automotive Index -Total Return Index |
Scheme Benchmark | Nifty EV and New Age Automotive Index-Total Return Index |
Investment Objective | The investment objective of the Scheme is to generate long term capital growth by investing in securities of the Nifty EV & New Age Automotive Index in the same proportion / weightage with an aim to provide returns before expenses that track the total return of Nifty EV & New Age Automotive Index, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved. |
Fund Manager | Abhishek Jain |
Minimum Investment Amount | Rs 500 and in multiples of Re. 1/-thereafter |
Exit Load | Nil |
Credit: Groww
About the Groww Nifty EV & New Age Automotive ETF FOF
The ETF Fund of Funds (FOF) aims to generate long-term capital gains by investing primarily in the units of the Groww Nifty EV & New Age Automotive ETF.
This FOF provides an indirect way to gain exposure to the EV sector by pooling investments into the underlying ETF.
It is suitable for investors who prefer a fund-of-funds approach, offering diversification through the ETF.
However, investors should be aware that this FOF entails higher risk, as its performance depends on the underlying ETF’s returns.
Name of the scheme |