Groww MF launches ETF & FoF based on Nifty EV & New Age Automotive Index

Investment schemes will help investors 'capitalise on future of electric mobility and related technologies', says company

Groww Mutual Fund has launched two new investment schemes that aim to capitalise on the growing electric vehicle (EV) market in India. Groww Nifty EV & New Age Automotive ETF and the Groww Nifty EV & New Age Automotive ETF Fund of Funds (FoF) will track the Nifty EV & New Age Automotive Index - TRI.

 

“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 designed to help investors capitalise on the future of electric mobility and related technologies, providing exposure to a diverse portfolio of companies driving innovation in the EV ecosystem,” said Varun Gupta, chief executive officer of Groww Asset Management in a press release.

 

 

Groww Nifty EV & New Age Automotive ETF

 

Groww Nifty EV & New Age Automotive ETF is designed to replicate the performance of the Nifty EV & New Age Automotive Index, which comprises 33 companies on the Nifty 500 index that are engaged in the EV ecosystem. These include manufacturers of electric, hybrid, and hydrogen fuel-based vehicles, as well as companies involved in battery production and charging infrastructure. The ETF aims to provide long-term capital growth by investing in these securities in proportion to their weightage in the index.

 

The scheme will allocate 95-100 per cent in equities and equity-related securities of companies engaged in or expected to benefit from EV and new age automotive themes, 0-5 per cent in money market instruments/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.

 

This scheme is suitable for investors seeking long-term capital appreciation and investment in equity and equity-related instruments of the Nifty EV & New Age Automotive Index. Investors should consult their financial advisor before investing

 

Groww Nifty EV & New Age Automotive ETF FOF

 

The FoF variant will invest in units of the Groww Nifty EV & New Age Automotive ETF, allowing investors to gain exposure to the same underlying assets while potentially benefiting from a diversified investment approach.

 

The scheme will allocate 95-100 per cent in units of Groww Nifty EV & New Age Automotive ETF or similar ETF tracking the Nifty EV & New Age Automotive Index, and 0-5 per cent in debt and money market instruments / and units of debt/liquid schemes of domestic mutual funds.

 

This scheme is suitable for investors seeking long term capital appreciation and to invest predominantly in units of Groww Nifty EV & New Age Automotive ETF. The risk associated with the scheme is very high,said the release.

 

Investment details

 

The minimum investment for the ETF is set at Rs 500, while the FoF allows for a minimum investment of Rs 100 for a systematic investment plan (SIP) and Rs 500 for lump-sum purchases. Both schemes have no exit load if investments are held for more than 30 days and If redeemed within 30 days from the date of allotment 1 per cent will be charged.

Investment period

The NFO for the Groww Nifty EV & New Age Automotive ETF will be available until August 2, 2024, while the Groww Nifty EV & New Age Automotive ETF FOF will be open from July 24 to August 7, 2024.

Fund managers:

Abhishek Jain will manage the fund.