The Indian government has been significantly supporting the Electric Vehicle (EV) sector with various initiatives. Under the Electric Mobility Promotion Scheme 2024, Rs 500 crores have been allocated from April 1 to July 31 to accelerate the adoption of electric two-wheelers and three-wheelers. Additionally, the government has set an ambitious target of 30% electric vehicles by 2030with annual sales expected to surpass 16 million units. To further incentivize this transition, approximately Rs 18,0004 crore have been dedicated to boosting EV battery production, according to the press release by the fund house.
“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 capitalize 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,” said Varun Gupta, CEO, Groww Mutual Fund.
Groww Nifty EV & New Age Automotive ETF
The investment objective of the scheme is to generate long term capital growth by investing in securities of the Nifty EV & New Age Automotive Index in the same proportion / weightage with an aim to provide returns before expenses that track the total return of Nifty EV & New Age Automotive Index, subject to tracking errors.
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.
The scheme will allocate 95-100% in equities and equity-related securities of companies engaged in or expected to benefit from Electric Vehicles & New Age Automotive Themes, 0-5% in money market instruments/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.
The scheme will be managed by Abhishek Jain. The minimum investment amount is Rs 500 and in multiples of Re 1 thereafter. The scheme will be benchmarked against Nifty EV & New Age Automotive index – TRI.
Groww Nifty EV & New Age Automotive ETF FOF
The investment objective of the scheme is to generate long term capital gains by investing in units of the Groww Nifty EV & New Age Automotive ETF.
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. Further, the risk associated with the scheme is very high.
The scheme will allocate 95-100% in units of Groww Nifty EV & New Age Automotive ETF or similar ETF tracking the Nifty EV & New Age Automotive Index, and 0-5% in debt and money market instruments / and units of debt/liquid schemes of domestic mutual funds.
The minimum application amount for monthly SIP is Rs 100 and in multiples of Re 1 for purchases and of Re 0.01 for switches. For lumpsum the minimum application amount is Rs 500 and in multiples of Re 1 for purchases and of Re 0.01 for switches. The scheme will be benchmarked against Nifty EV & New Age Automotive Index.
