Groww EV and New Age Automotive ETF: As India gears up for a green revolution in the automotive sector, the Groww Nifty EV & New Age Automotive ETF presents a promising investment opportunity. This New Fund Offer (NFO) aims to capitalize on the burgeoning electric vehicle (EV) market, which is projected to grow exponentially over the next decade. Let’s delve into the performance, potential, and key details of this innovative investment scheme.
Understanding the Nifty EV & New Age Automotive Index
The Nifty EV & New Age Automotive Index is designed to track the performance of companies that are part of the EV ecosystem or are involved in the development of new-age automotive technologies. This index includes manufacturers of electric, hybrid, hydrogen fuel-based, and green hybrid vehicles, as well as producers of electric batteries and components, and suppliers of raw materials for EVs and autonomous vehicles.
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Performance Analysis: Nifty EV & New Age Automotive Index vs. Nifty 50
A comparative analysis of the Nifty EV & New Age Automotive Index and the Nifty 50 over different time frames reveals the superior performance of the EV index:
| Time Frame | Index | CAGR Return | Sharpe Ratio |
|---|---|---|---|
| 5 Years | Nifty EV & New Age Automotive | 36.00% | 21.86 |
| Nifty 50 | 16.53% | 8.43 | |
| 3 Years | Nifty EV & New Age Automotive | 39.38% | 32.27 |
| Nifty 50 | 16.32% | 13.78 | |
| 1 Year | Nifty EV & New Age Automotive | 60.00% | 60.34 |
| Nifty 50 | 28.12% | 27.13 |
The data clearly indicates that the Nifty EV & New Age Automotive Index has outperformed the Nifty 50 across all time frames. Over the past five years, the EV index has delivered a CAGR return of 36.00%, significantly higher than the Nifty 50’s 16.53%. The trend continues over three years and one year, with the EV index providing returns of 39.38% and 60.00%, respectively, compared to the Nifty 50’s 16.32% and 28.12%.
Why Invest in Groww EV and New Age Automotive ETF?
The Groww EV and New Age Automotive ETF offers several compelling reasons for investors to consider:
- High Growth Potential: The EV market in India is expected to grow at a CAGR of 45.5% from 2022 to 2030, driven by government initiatives, technological advancements, and increasing environmental awareness.
- Diversified Exposure: The ETF invests in a wide range of companies within the EV ecosystem, including manufacturers of EVs, hybrid vehicles, and related technologies, as well as producers of EV components and batteries.
- Simplified Investment: By investing in units of the Groww Nifty EV & New Age Automotive ETF, investors can avoid the complexity of selecting individual stocks and gain broad exposure to the high-growth EV sector.
- Expert Management: Managed by Abhishek Jain, the fund leverages expertise in identifying and capitalizing on opportunities within the EV ecosystem.
- Attractive Investment Terms: With a minimum investment amount of just Rs. 100 for monthly SIPs and Rs. 500 for lumpsum investments, the ETF is accessible to a wide range of investors.
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Groww EV and New Age Automotive ETF: Key Details of the Scheme
- Name of the Scheme: Groww EV and New Age Automotive ETF FOF
- Scheme Type: Groww EV and New Age Automotive ETF is an open-ended fund of fund scheme investing in units of Groww Nifty EV & New Age Automotive ETF
- Scheme Benchmark: Nifty EV & New Age Automotive Index
- Category: Fund of Fund – Domestic (FOF)
- Investment Objective: To generate long-term capital gains by investing in units of the Groww EV & New Age Automotive ETF. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
- Fund Manager: Groww EV and New Age Automotive ETF managed by Abhishek Jain
- Minimum Investment Amount:
- Monthly SIP: Rs. 100 and in multiples of Re. 1 for purchases and of Re. 0.01 for switches.
- Lumpsum: Rs. 500 and in multiples of Re. 1 for purchases and of Re. 0.01 for switches.
- Exit Load: 1%, if redeemed within 30 days
Conclusion
The Groww EV and New Age Automotive ETF NFO represents a strategic opportunity to invest in the rapidly growing EV sector. With the Indian government’s strong push towards electric mobility and the impressive performance of the Nifty EV & New Age Automotive Index, this ETF is poised to offer substantial long-term capital gains. Investors looking to diversify their portfolios and capitalize on the future of transportation should consider this innovative investment option.