The NFO of Groww Nifty EV & New Age Automotive ETF (exchange-traded fund) will be open till August 2, 2024
The NFO of Groww Nifty EV & New Age Automotive ETF FOF (fund of funds) will be open till August 7, 2024
The National Stock Exchange (NSE) launched a new thematic index – Nifty EV & New Age Automotive index – in May
Wealthtech startup Groww’s asset management business Groww
Mutual Fund launched two new fund offerings (NFO) – Groww Nifty EV & New Age Automotive ETF and Groww Nifty EV & New Age Automotive ETF FOF on Wednesday (July 24).
The NFO of Groww Nifty EV & New Age Automotive ETF (exchange-traded fund) will be open till August 2, 2024, and that of Groww Nifty EV & New Age Automotive ETF FOF (fund of funds) will be open till August 7, 2024.
The development comes on the heels of the National Stock Exchange (NSE) launching a new thematic index – Nifty EV & New Age Automotive index – in May this year. The exchange announced the launch of the index to track the performance of companies that are a part of the EV ecosystem or involved in developing new-age automotive vehicles or related technology.
Speaking on the NFOs, 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.”
“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,” he said.
The listed companies that are included in this list are EV battery manufacturers Amara Raja Energy & Mobility and Exide Industries Ltd, vehicle manufacturers Bajaj Auto Ltd, Hero MotoCorp Ltd, Olectra Greentech Ltd, TVS Motor Company Ltd, and Tata Motors Ltd, among others.
Meanwhile, it is also pertinent to note that the leading electric two-wheeler manufacturer in the country, Ola Electric, is set to soon make its public market debut.
Groww’s new funds are designed for long-term capital appreciation but have ‘very high risk’ benchmarks.
As Groww’s asset management arm noted in its statement today, the Indian government, under the Electric Mobility Promotion Scheme 2024 has allocated INR 500 Cr from April 1 to July 31 2024 to accelerate the adoption of electric two-wheelers and three-wheelers.
While FAME III is not yet launched, there is a high expectation in the market of its launch soon, which could further bolster EV adoption in the country.
Earlier, Mirae Asset Investment Managers (India) also launched its Nifty EV & New Age Automotive ETF.
