ICICI Prudential MF and Nippon India MF have launched Nifty Auto ETFs, open-ended schemes that will replicate the Nifty Auto Index.
ICICI Prudential Nifty Auto ETF will provide exposure to blue chip auto and auto ancillary names which are part of the benchmark indices.
Commenting on the launch, Chintan Haria, Head - Product Development & Strategy, ICICI Prudential MF said, “Investors will be able to tap into the evolving space of the Indian automobile industry. With India being an emerging global hub for auto component sourcing coupled with the government support for electric mobility, we believe this space is likely to be under the spotlight.”
ICICI Prudential Nifty Auto ETF closes for subscription on January 10, 2022.
Likewise, Nippon India Nifty Auto ETF will provide exposure to the top fifteen companies (as per Nifty Auto Index methodology) representing auto-related sectors like 4 wheelers, 2 & 3 wheelers, auto ancillaries, and tyres.
Talking about the NFO, Hemen Bhatia, Head ETF, Nippon India MF said, “The fund will provide a simple and low-cost (in terms of total expense ratio) portfolio building block to participate in the auto sector.”
“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”, added Hemen.
Nippon India Nifty Auto ETF closes for subscription on January 14, 2022.
