Groww Mutual Fund launched Groww Nifty EV & New Age Automotive ETF, and NFO closes on August 2. Read on to learn more.
Groww Mutual Fund launched the Groww Nifty EV & New Age Automotive ETF and its FOF on July 24, 2024. These funds aim to leverage the performance of companies that are part of the EV ecosystem or are involved in developing new-age automotive vehicles or related technology. Since ETFs are traded on the stock exchange, investors need a demat account to invest in them. Another option is to invest in ETFs through the fund-of-fund route.
The New Fund Offer runs from July 25, 2024, to August 8, 2024. The minimum monthly SIP amount is Rs 100 and in multiples of Re.1 for purchases and of Re 0.01 for switches.
The minimum lump sum amount is Rs. 500 and in multiples of Rs. 1 thereafter. An exit load of 1 per cent is imposed if units are redeemed within one month from the date of allotment.
These schemes will invest 95 to 100 per cent of their funds in the stocks constituting the Nifty EV & New Age Automotive index - TRI.
The Nifty EV & New Age Automotive Index contains 33 companies from the Nifty 500 index, which are engaged in EV manufacturing, hybrid and hydrogen fuel-based vehicles, charging infrastructure, battery production, and other crucial areas of the EV ecosystem. The index is predominantly composed of companies from the automobile and auto components industry.
Centre has allocated Rs 500 crores from April 1 to July 31, 2024, to promote electric two-wheelers and three-wheelers through the Electric Mobility Promotion Scheme 2024. It aims to achieve 30 per cent electric vehicle penetration by 2030, with plans to boost EV battery production with an investment of approximately Rs 18,000 crores.
India is focused on transitioning to electric vehicles to reduce carbon emissions whereas transportation currently contributes to 13.5 per cent of the country’s total carbon emissions. In 2023, EV sales in India nearly doubled, reaching 2 per cent of all passenger vehicle sales.
Varun Gupta, CEO, Groww Asset Management Ltd said, " By investing in these funds, investors can seek to gain exposure to a diverse portfolio of companies driving innovation in electric vehicles, battery technology, charging infrastructure, and other critical areas of the EV ecosystem.”