Nippon India Mutual Fund launches India’s first automotive ETF. Check details

Nippon India Mutual Fund launches India’s first automotive ETF. Check Details | Photo credit: iStock Images

Bombay: Nippon Life India Asset Management Limited (NAM India) asset manager of Nippon India Mutual Fund (NIMF) announces a new fund offering (NFO) for Nippon India Nifty Auto ETF, India’s premier automotive ETF. The NFO opens on January 5, 2022 and closes on January 14, 2022. The minimum amount of investment required is Rs 1,000 and in multiples of Re 1 thereafter.

The Nippon India Nifty Auto ETF is an open program that tracks the Nifty Auto index. The ETF will invest primarily in equities comprising the Nifty Auto index in the same proportion as the index. It will provide exposure to the top 15 companies (using the Nifty Auto Index methodology) representing automotive related sectors such as 4-wheel automobiles, 2- and 3-wheel automobiles, auto accessories and tires.

The ETF is designed entirely to reflect the behavior and performance of the automotive industry. It will be compared to Nifty Auto TRI. The investment objective of the program is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty Auto Index before expenses, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

Hemen Bhatia, ETF Director, Nippon India Mutual Fund, said, “The Nippon India Nifty Auto ETF is another addition to our ETF offerings, helping investors participate in the growth story of the Indian automotive sector by investing in a basket of 15 stocks representing the Nifty Auto Index. Nippon India Nifty Auto ETF, which is the first automotive sector ETF to be launched in India, will provide a simple and inexpensive portfolio building block (in terms of total expense ratio) to participate in the automotive sector ”.

He added that “with most of the headwinds such as semiconductor supply constraints and rising commodity prices behind us and with the vision of the street shifting from fear of electrification to see the electric vehicle (EV) as an opportunity, investors will be exposed to EVs. also, within the framework of the global exposure to the automotive sector. It is an honor to play a vital role in helping so many investors achieve their investment goals ”

Nippon India Mutual Fund (NIMF) is one of the largest ETF players in India with a AUM of more than Rs 500 billion as of November 30, 2021. It has one of the most comprehensive ETF packages comprising 23 industry ETFs on equities, debt securities and commodities. With over 65 lakh folios in ETFs as of November 30, 2021, NIMF has a 60% market share.


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