Mirae Asset Nifty EV ETF Review! 5 Quick Important Details to Know

Mirae Asset Nifty EV ETF opens for subscription on June 24th and it would follow the Nifty EV and New Age Automotive Total Return Index. The Mirae Asset Nifty EV ETF fund is India’s first and investors can invest in the open-ended scheme with a minimum investment of ₹5000. In this article, find full details of Mirae Asset Nifty EV ETF and 10 quick important questions with answers related to the Mirae Asset Nifty EV and New Age Automotive ETF that you should know before investing.

Find all of these details below: Mirae Asset Nifty EV ETF opening date, closing date, allotment date, share price, fund managers, minimum investment, how to invest, should you apply or not, risks attached, and more

Mirae Asset Investment Managers (India) Pvt. Ltd. is the ultimate subsidiary of Mirae Asset Global Investments (owned by Hyeon Joo Park). Currently, the Mirae Asset investment firm in India manages assets worth ₹1.74 Lakh Crores and about 63 mutual fund schemes. Needless to say, its amongst one of the top mutual fund managers in India.

With the launch of Mirae Asset Nifty EV and New Age Automotive ETF, the company has become first in India to launch an EV Exchange Traded Fund (ETF).

What is an ETF in the stock market?

An Exchange Traded Fund (ETF) is simply a basket of stocks, securities & other assets. You can sell or trade this “basket” in the stock market like any other stock. You also need not worry about diversification as that already gets taken care of in the case of ETF

Important to know:

Since ETFs mainly track an index (are passively managed), the chances of tracking error are higher compared to mutual funds which are actively managed by companies to outperform the market returns.

Nevertheless, here are some of the key details of Mirae Asset ETF you need to know.

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(scroll down to page 17 in the PDF to find the application form)

Mirae Asset Nifty EV ETF will be tracking the Nifty EV & New Age Automotive Index which aims to track the performance of the companies that are active in electric vehicles or new-age automotive vehicles (such as hybrid vehicles, hydrogen fuel-based vehicles and green hybrid vehicles) segment.

Currently, it has 33 constituents with Mahindra & Mahindra having the highest weight at 9.69 per cent. Bajaj Auto and Maruti Suzuki are the next largest constituents with a weight of 7.2 per cent each.

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We know what you might be thinking, “should I apply for Mirae Asset Nifty EV ETF or not?” Well, the answer depends on your personal preference. But here are a few details that might help.

Last month we also saw SBI launching its automotive fund and HDFC bringing its HDFC Manufacturing Fund. While manufacturing by itself consists of several industries such as oil, healthcare, textiles, mining, etc, the Automobile industry still holds a giant slice of 24.19% in the manufacturing sector of the country.

A recent report by Bloomberg also suggests that India's electric vehicle sales are expected to skyrocket to 5.9 million by 2040

Mutual funds managers & companies are betting big on the EV & automobile market in India.

The Government of India in March also approved an E-Vehicle policy to promote India as a Manufacturing Destination for e-vehicles. The policy also allows lesser custom duty on imports for EVs upon fulfilling certain criteria.

Overall, it does seem like the Mirae Asset Nifty EV ETF is a good opportunity to invest. But, there are some risks attached too which you must consider before investing.

Before you choose to invest, here are a few risk factors associated with Mirae Asset Nifty EV & New Age Automotive ETF.

First, being an ETF (a passively managed fund), the chances of tracking error are slightly higher as compared to mutual funds or other actively managed funds.

The performance is tied directly to the benchmark index which might have an attached risk during times of volatility.

The Mirae Asset Nifty EV Exchange Traded Fund entails exposure to early-stage companies and new technologies, potentially leading to higher volatility compared to traditional funds.

Not to mention, there are also category-wise risks attached such as shortage of EV chips, geo-political disputes that may impact the sourcing of raw materials, etc.

To apply for the Mirae Asset Nifty EV & New Age Automobile ETF, investors can fill out the application form on the Mirae Assets (India) website. Interested investors can also use discount stock brokers in India such as Upstox, Groww, Angel One, Zerodha, etc to invest and trade in ETFs.  

So this was all about sharing the complete details of Mirae Asset Nifty EV & New Age Automotive ETF that is all set to open soon. Before we proceed to finish this article, here’s a small piece of disclaimer you must know:

Disclaimer: The above is not an investment advice or suggestion. My goal is to only provide some useful additional information that may help you make your decision. You are required to conduct your own research before investing.

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