Mirae Asset Investment Managers (India) is poised to introduce India’s maiden exchange traded fund (ETF) focused on the electric vehicle (EV) and new-age automotive ecosystem. The asset manager has filed documents with the Securities and Exchange Board of India (SEBI) for the ‘Mirae Asset Nifty EV and New Age Automotive ETF’, marking a significant development in India’s rapidly evolving automotive landscape.
Pioneering Innovation in Finance
The ETF, once approved by SEBI, will provide investors with exposure to India’s burgeoning EV and new-age automotive sectors. Leveraging the Nifty EV and New Age Automotive Index, the ETF will encompass companies involved in the development and deployment of EVs, battery technology, and related infrastructure.
Strategic Portfolio Inclusion
Mirae Asset’s ETF portfolio will feature industry leaders, beneficiaries of production linked incentives (PLI), members of the Society of Manufacturers of Electric Vehicles (SMEV), and participants in government initiatives such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME). This strategic selection ensures comprehensive coverage of the evolving automotive landscape.
Driving Investor Value
Siddharth Srivastava, Head of ETF Products at Mirae Asset India, underscores the ETF’s value proposition as a gateway to India’s EV revolution. The ETF’s launch aligns with Mirae Asset’s commitment to offering innovative investment solutions that cater to evolving market trends and investor preferences.
Market Outlook and Growth Potential
Mirae Asset’s move comes amidst a burgeoning market for EVs in India, with sales surpassing 15 lakh units in 2023. This exponential growth trajectory, driven primarily by two-wheelers and three-wheelers, underscores the immense potential of the EV sector in India.
Government Initiatives and Policy Support
The Indian government’s proactive stance, through initiatives like FAME and incentives for electric vehicle manufacturing, has further bolstered investor confidence in the sector. With a new EV policy on the horizon, India is poised to emerge as a global hub for EV manufacturing and innovation.
Investor Opportunity and Economic Impact
Mirae Asset’s EV-focused ETF presents investors with a unique opportunity to capitalize on India’s automotive transformation. Swarup Anand Mohanty, Vice Chairman and CEO of Mirae India, emphasizes the long-term growth potential of the EV and automotive disruptions, positioning the ETF as a strategic investment avenue.
