India’s First Auto ETF: Instead of investing directly in the stock market, the golden chance to take advantage of the boom in auto stocks through ETFs is going to be available soon.
India’s First Auto ETF: Instead of investing directly in the stock market, the golden chance to take advantage of the boom in auto stocks is also going to be available through ETFs soon. Nippon Life India Asset Management Limited (NAM India), the asset manager of Nippon India Mutual Fund (NIMF), today (January 3) announced the launch of the country’s first auto sector ETF. This Nippon India Auto ETF will be an open ended scheme that will track the Nifty Auto Index. NIMF is one of the largest ETF players in the country, which manages a fund of Rs 50,000 crore as of 30 November 2021, according to the available data.
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Key highlights of Nippon India Nifty Auto ETF
- It will be an open ended scheme which will track Nifty Auto Index.
- This NFO (New Fund Offer) will open for subscription on January 5, 2022 and will close on January 14.
- You can invest in this fund in a minimum of Rs 1 thousand and thereafter in multiples of Rs.
- According to a statement issued by NIMF, the money invested in Nippon India Nifty Auto ETF will be invested in stocks included in Nifty Auto Index in the same proportion as they are included in Nifty Auto Index.
- Investments made in this fund will get exposure to top 15 companies of four wheeler, three wheeler, two wheeler, auto parts as per Nifty Auto Index method.
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Growing trend of electric vehicles will also benefit
Hemen Bhatia, Head of ETFs, NIMF said that Nippon India Nifty Auto ETF will give investors a better opportunity to build portfolios with easy to invest in the auto sector and at low cost according to the total expense ratio. According to Bhatia, the auto sector is currently facing the challenges of shortage of semiconductors and rising commodity prices. Apart from this, the trend of electric vehicles may increase in the coming time, due to which there is apprehension in the minds of investors, but it should be seen as a golden opportunity for investment. According to Bhatia, Nippon India will also track Nifty Auto ETF EVs (Electric Vehicles).
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