Nippon India MF launches country’s first auto ETF

In the new year, there are new investment opportunities. On Monday, Nippon Life India Asset Management Limited (NAM India), the asset management arm of Nippon India Mutual Fund (NIMF), announced the launch of Nippon India Nifty Auto ETF, the country’s first auto sector exchange-traded fund. The Auto ETF is a closed-end fund that tracks the Nifty Auto Index. The New Fund Offer (NFO) will begin on January 5, 2022, and end on January 14, 2022. This requires a minimum investment of Rs 1,000. Following that, investors can make investments in multiples of Rs.

India, Nippon The Nifty Auto ETF will invest in the same proportion as the Nifty Auto Index in stocks that make up the index. The fund will provide exposure to the top 15 companies in the auto-related sectors, such as four-wheelers, two-wheelers, and three-wheelers, as well as auto ancillaries and tyres, according to the fund house.

The ETF will be compared to the Nifty Auto TRI index. The ETF was created to accurately reflect the performance of the automotive industry. The scheme’s investment goal is to achieve investment returns that are comparable to the total returns of the securities represented by the Nifty Auto Index before expenses. However, there is no assurance or guarantee that the scheme’s investment objective will be met.

Automobile companies will benefit from their expansion.
“The Nippon India Nifty Auto ETF is a new addition to our ETF category, which provides investors with an opportunity to invest in India’s auto sector by investing in a basket of 15 stocks representing the Nippon Auto Index,” said Hemen Bhatia, Head ETFs, Nippon India Mutual Fund. Assists in taking part in the development story.

According to him, the Nippon India Nifty Auto ETF is India’s first auto sector ETF. It will assist in the development of a simple and low-cost portfolio for participation in the auto sector.

According to Bhatia, rising commodity prices combined with dwindling semiconductor supply is a negative sign for the auto industry. However, the opportunity in Electric Vehicles (EVs) allows investors to profit from the entire auto industry while also getting a lot of exposure to EV themes.

What is the smallest amount of money you can invest?
The Nippon India Nifty Auto ETF requires a minimum investment of Rs 1,000. They can then invest in multiples of Re 1 after that. This promotion will begin on January 5th and end on January 14th.

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