Outperformed the Nifty 500 TRI: ICICI Prudential Nifty EV & New Age Automotive ETF & FOF..!

Investment Guru Tuesday, March 25, 2025 0

Outperformed the Nifty 500 TRI: ICICI Prudential Nifty EV & New Age Automotive ETF & FOF..!

Highlights:

- NFO Period:

ETF: March 21, 2025 – April 2, 2025

FOF: March 28, 2025 – April 10, 2025

- Investment Focus: Companies in the Electronic Vehicle (EV) ecosystem and new-age automotive sector

- Benchmark: Nifty EV & New Age Automotive TRI

- Minimum Application Amount:

ETF – During NFO - ₹1,000 (plus in multiples of ₹1)

FOF – During NFO/Ongoing Offer Period - ₹1,000 (plus in multiples of ₹1)

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty EV & New Age Automotive ETF, an open-ended Exchange-Traded Fund tracking Nifty EV & New Age Automotive Index. Based on this ETF, the fund house is also introducing the ICICI Prudential Nifty EV & New Age Automotive ETF FOF, such that investors without a Demat account can participate in this scheme.

This launch provides investors with an opportunity to gain exposure to India’s rapidly expanding EV and new-age automotive sector, which includes electric two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, battery manufacturers, components, raw materials suppliers, and automotive technology providers.

Driven by increasing adoption and supportive government policies, this industry is projected to grow at an accelerated pace. By investing in the Nifty EV & New Age Automotive Index, investors can gain a diversified exposure to India’s rapidly evolving EV sector and can capitalize on the global shift towards sustainable mobility.

Why Invest in the Nifty EV & New Age Automotive ETF or FOF?

- Access to a High-Growth Sector: The EV and new-age automotive ecosystem is expanding rapidly, backed by government incentives and technology advancements

- Diversified Portfolio: Exposure across the entire EV value chain, including automakers, component makers, software providers to original equipment manufacturers

- The scheme aims to capitalize on global shift towards sustainable mobility with advancements in technology and improving fuel efficiency

- Cost-Efficiency: The ETF offers a passive, low-cost investment approach that mirrors the performance of the underlying index.

- Convenience of FOF: Investors without a Demat account can get exposure to the ETF through the FOF while benefiting from SIP and STP options.

Government Support for EV Sector

India’s EV industry has seen continuous policy support, including:

Ministry of New and Renewable Energy (MNRE) incentive scheme for EV

Faster Adoption and Manufacturing of Electric Vehicles (FAME) I & II

PLI (Production Linked Incentive) schemes worth ₹1.2 lakh crore for EV manufacturing

Battery Swapping Policy to improve charging infrastructure

Reduction in Custom duties on EV Imports

Source: ASSOCHAM Report, September 2024

About the Nifty EV & New Age Automotive Index

Index Snapshot

The top 10 stocks represent a diversified mix of companies integral to the EV ecosystem, including those engaged in the production of electric vehicles and hybrid automobiles, and advanced automotive technologies. This balanced selection provides exposure to key players driving innovation and sustainability in the new-age mobility sector.

The stocks mentioned here are forming part of Nifty EV & New Age Automotive Index as on 28th February 2025. The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s). The asset allocation and investment strategy will be as per SID.

Index Performance

The Index has grown steadily over the years and has outperformed the Nifty 500 TRI.

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