Nippon Life India Asset Management Limited, Asset Manager of Nippon India mutual fund (NIMF) has announced the launch of India’s first auto sector ETF – Nippon India Nifty Auto ETF. Auto ETF is an open ended scheme tracking the Nifty Auto Index.
The Nippon India Nifty Auto ETF will primarily invest in stocks comprising the Nifty Auto Index in the same proportion as the index. The fund house said it will provide exposure to the top 15 (as per Nifty Auto Index methodology) companies representing auto-related sectors such as automobile 4 wheeler, automobile 2 and 3 wheeler, auto ancillaries and tyres.
The New Fund Offer (NFO) will open on January 5, 2022 and close on January 14, 2022. The minimum investment amount required during New Fund Offer (NFO) is 1,000 and thereafter in multiples of Rs.
The ETF will be benchmarked against Nifty Auto TRI. The investment objective of the scheme is “to provide investment returns commensurate with the total returns of securities before expenditure by Nifty Auto Index, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.” Will go,” Nippon MF said.
Speaking at the launch, Hemen Bhatia, Head ETFs, Nippon India Mutual Fund said, “Nippon India Nifty Auto ETF which is the first auto sector ETF to be launched in India, will provide a simple and low cost (in terms of total spend) Ratio) Portfolio Building Blocks for Participating in the Auto Sector”.
He further added that “With the supply constraints of semi-conductors as well as the rise in commodity prices behind us and the fear of electrification on the road to view electric vehicles (EVs) as an opportunity, investors should look at EVs. Will get exposure for the theme. Also, as part of the overall auto sector exposure.”
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