The Securities and Exchange Board of India (Sebi) has received draft documentation from Groww Mutual Fund in preparation for the launch of the Groww Nifty EV & New Age Automotive ETF FOF (Fund of Fund). The proposed fund will invest in stocks included in the Nifty EV & New Age Automotive Index with the goal of producing long-term capital growth.
The Nifty EV and New Age Automotive Index – Total Return Index (TRI) serves as the benchmark index for this exchange-traded fund. The scheme is classified as an Exchange Traded Fund (ETF) under the category of Other Schemes. The investing team will mainly employ a bottom-up method for choosing securities and instruments and a top-down method for sector allocation and interest rate views. Abhisek Jain will oversee the fund’s management.
The minimum application amount for a lump-sum purchase will be Rs 500, with increments in multiples of Re 1 for purchases and Re 0.01 for switches. For SIP investments, the minimum application amount will be Rs 1,200, requiring a minimum of 12 SIP instalments of Rs 100 each for the monthly option, and four SIP instalments of Rs 300 each for the quarterly option.
If you wish to redeem within 30 days from the date of allotment 1 percent exit load will be applicable. After 30 days from the date of allotment no exit load will be applicable.
The fund will allocate 95-100 per cent of its assets to equity and equity-related securities of companies engaged in or expected to benefit from electric vehicles and new-age automotive themes. 0-5 per cent will be invested in money market instruments, debt securities, and units of debt/liquid schemes of domestic mutual funds.
The launch of the Groww Nifty EV & New Age Automotive ETF FOF comes at a time when the electric vehicle and new-age automotive sectors are gaining traction globally, driven by factors such as increasing environmental awareness, government incentives, and technological advancements.
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