mutual-fund

Nippon India MF launches India’s first Auto ETF. Key details here

Nippon India MF launches India’s first Auto ETF. Key details here

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. The Auto ETF is an open-ended scheme tracking the Nifty Auto Index. Nippon India Nifty Auto ETF will predominantly invest in stocks comprising of the Nifty Auto Index in the same proportion as the Index. It will provide exposure to Top 15 (as per Nifty Auto Index methodology) companies representing auto-related sectors like Automobiles 4 wheelers, Automobiles 2 & 3 wheelers, Auto Ancillaries, and Tyres, the fund house said. 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 in multiples of Re 1 thereafter. The ETF will be benchmarked against Nifty Auto TRI. The investment objective of the scheme is “to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty Auto Index before expenses, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved, Nippon MF added. Speaking at the launch, Hemen Bhatia, Head ETF, 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 expense ratio) portfolio building block to participate in the auto sector. He further added that “With most headwinds like supply constraints of semi-conductor along with increasing commodity prices behind us and with the street view moving from fear of electrification to seeing Electric Vehicle (EV) as an opportunity, investors will get exposure to EV theme as well, as part of the overall auto sector exposure. Download.

mutual-fund 2022-01-03 Livemint