Kolkata: One of the most prominent AMCs (asset management company) of India, ICICI Prudential, has launched ICICI Prudential Nifty EV & New Age Automotive ETF and Fund of Funds. This is quite an innovative offering in the electric vehicles investment space. Investors can apply for investment in the ETF (exchange traded fund) from today, March 21, 2025. It will remain open till April 2. The Fund of Funds will remain open from March 28 to April 10, 2025.
It must be noted that in order to participate in the ETF, investors will need a demat account. However, if one wants to participate in the Fund of Funds, one does not need a demat account at all.
Why EV matters
EVs are not being pushed by governments around the world merely for their emission advantages and environmental benefits. There are other benefits as well and these concern the consumer/user. They offer lower operating costs and protection from volatility of fuel prices. Moreover, technological upgradations are resulting in a lowering of battery prices and governments are offering incentives to the companies and consumers as well. This is making EVs increasingly more affordable. Driving technology of EVs is also improving.
Focus of the ETF and FoF
India has a rapidly expanding space for electric vehicles and the twin launches from ICICI Prudential provide investors with an opportunity to profit from this flourishing market in the country. It includes the entire domain of EVs and related sectors such as 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,” said Abhijit Shah, chief marketing and digital business officer of ICICI Prudential AMC.
At a glance
Initial investment opportunity window in ETF: March 21-April 2, 2025
Initial investment opportunity window in Fund of Fund: March 28-April 10, 2025
Benchmark index: Nifty EV & New Age Automotive TRI
Minimum application in ETF: 1000 + multiples of 1
Minimum application in FO: 1,000 + multiples of 1
Focus: Stocks in EV ecosystem and new-age automotive sector
Risk: Very high
Top 10 stocks
The company has stated that these two instruments will allow investors focused access to the profits of the EV and new-age automotive sector in India. Simultaneously, it will provide exposure to the entire EV value chain, automakers, component manufacturers, OEMs and even software companies engaged in the business. ETFs are passive low-cost investment instrument.
According to ICICI Prudential, the top stocks will be Matruti Suzuki, Bajaj Auto, M&M, Tata Motors, Reliance INdustries, L&T Technology Services, Sona BLW Precision, KPIT Technologies, Tata Elxsi and Bosch.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals and crypto assets.)
ICICI Prudential has stated that these two instruments will allow investors focused access to the entire EV value chain consisting of automakers, component manufacturers, OEMs and even software companies engaged in the business. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
