Mirae Asset Nifty EV & New Age Automotive ETF NFO: Review

Introduction

The Indian automotive industry has seen a significant transformation in recent times, prioritizing eco-friendly and sustainable mobility solutions. A robust electric vehicle (EV) ecosystem is anticipated to be developed in India as a result of proactive government initiatives including the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and production-linked incentives (PLI).

Between 2021 and 2027, the Indian EV market is anticipated to expand at a compound annual growth rate (CAGR) of more than 40%, with a projected market value of more than $150 billion at that time.

Do you include yourself among those who want to invest in mutual funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'Mirae Asset Nifty EV and New Age Automotive ETF'.

This article will describe what is included in the fund program and how it works.

 

Everything You Need to Know About Mirae Asset Nifty EV and New Age Automotive ETF - NFO

The Mirae Asset Nifty EV and New Age Automotive ETF is a brand-new ETF that Mirae Asset Mutual Fund is introducing. This ETF will invest in a variety of firms engaged in the production of batteries, electric and hybrid vehicles, and other innovative technologies related to the automotive industry. 

The scheme aims to track the Nifty EV and innovative Age Automotive Index. Investing in this ETF is supposed to reflect the performance of these firms in your returns. Even if there's no assurance of earnings, the ETF provides the advantage of industry diversification. The investment window is open from June 24 to July 05, 2024, with a starting price of Rs.5000 with no Exit Load.

To learn about the fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

 

Mirae Asset Nifty EV and New Age Automotive ETF - NFO Overview

The investment period for the Scheme is set for June 24, 2024, to July 05, 2024. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest 95-100% of its funds in stocks listed in the Nifty EV and New Age Automotive indexes, and 0-5% in money market instruments like tri-party repo agreements, debt securities, and debt/liquid schemes provided by local mutual funds.

 

Fund Overview

The minimum subscription amount is set at Rs.5000 with no expense ratio and exit load.

Start Date	24 June 2024
End Date	05 July 2024
VRO rating	-
Expense ratio	NA
Exit load	Nil
AUM (Fund size)	NA
Lock-in	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty EV and New Age Automotive Total Return Index
Min. Investment	Rs.5000
Risk	Very High
Short-term capital gains (STCG)	For less than 3 years, as per Tax Slab
Long-term capital gains (LTCG)	For more than 3 years, 20% is applicable.

 

The Objective of the Fund

The Scheme intends to produce returns that, before costs, match the Nifty EV and New Age Automotive Total Return Index's performance, allowing for tracking error. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Securities included in the New Age Automotive Index and Nifty EV	95	100	Very High
Money market products include debt securities, Tri-Party REPO, and/or units of domestic mutual funds' debt and/or liquid schemes.	0	5	Low

 

 

Peers of Mirae Asset Nifty EV and New Age Automotive ETF 

Index / Debt Funds	1Y Return	AUM (Cr)
HDFC NIFTY100 Quality 30 ETF- Growth	34.81%	11.72
ICICI Prudential FMCG Fund-Growth	10.36%	1,509.70
ICICI Prudential India Opportunities Fund - Growth	47.47%	19,792.23

 

Risk Factors in Such Funds

• The Scheme's NAV will respond to changes in the securities market. The fluctuation in the Scheme's net asset value (NAV) over short or long periods can result in losses for the Investor. These fluctuations can be caused by events such as changes in interest rates, noticed trends in stock prices, market movements, or longer periods during market downturns. 

• Despite the Scheme's NSE/BSE listing, there is no guarantee that an active secondary market will form or continue. As a result, there would occasionally be a period of low trade in the Scheme's units

• It's possible that the Scheme won't be able to sell any illiquid Securities right away. A possible large discount from the market price of comparable securities for which there is a liquid market may be reflected in the price of acquisition and subsequent valuation of limited and illiquid securities.

• The Scheme's investment results on some securities may not match those of other asset classes or the general securities markets. When comparing securities markets, different kinds of securities frequently experience cycles of outperformance and underperformance.

 

Past Performance of Index / Debt / ETF Funds

Index / Debt Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Edelweiss Nifty Smallcap 250 Index Fund - Direct Plan-Growth	17.66	64.78%	Very High Risk
Nippon India Nifty Smallcap 250 Index Fund - Direct Plan-Growth	33.896	63.96%	Very High Risk
SBI Nifty Smallcap 250 Index Fund - Direct Plan-Growth	18.58	64.37%	Very High Risk

 

Mirae Asset Nifty EV and New Age Automotive ETF NFO - Who can invest?

This fund is ideal for those who invest in equities securities included in the Nifty EV and New Age Automotive Total Return Index and who aim to receive returns consistent with the index's performance, subject to long-term tracking inaccuracy.

 

 

Mirae Asset Nifty EV and New Age Automotive ETF NFO - Growth Fund Managers

• Akshay Udeshi

• Ekta Gala
  
  

Conclusion

With a focus on electric and hybrid technology, the Mirae Asset Nifty EV and New Age Automotive ETF offer a promising investment opportunity in the quickly changing automotive industry. The ETF provides diverse exposure to both established and growing firms and is managed by professionals with experience. For investors looking for long-term profits in line with the developments and advances in the business, it is a compelling choice. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.