Electric vehicles (EVs) are the future of transportation, both globally and in India. Their popularity is surging. As EVs become more popular, investment in the sector is growing. ETFs are popular with investors. They want to profit from EV companies without buying individual stocks. This article will explore the best EV ETFs in India. It will cover their performance and key investment factors.
Why invest in EV ETFs in India?
Indian electric vehicle sales will surge in the years ahead. The government aims to boost the number of EVs on the road. It offers incentives to manufacturers and consumers to switch to electric power. As climate change worries rise, so do eco-car demands. Stricter rules drive this trend. But beyond the environmental benefits, there are also significant opportunities for financial growth.
Investing in EV ETFs lets investors enjoy this trend. They avoid the need to research individual companies. An ETF lets you buy a slice of the entire EV market. It can offer better returns while spreading out risk.
Top EV ETFs in India
1: Nippon India Nifty Auto ETF
This ETF tracks the Nifty Auto Index. It includes major players in India’s auto sector. Many are moving to electric vehicles. The Nippon India ETF Nifty Auto is a good option. It exposes the auto industry to the shift toward electric vehicles.
| ETF Symbole | AUTOBEES |
| Current Price | 261.2 (20-08-2024) |
| Expense Ratio | 0.22 |
| Market Cap | 217Cr |
| PE Ratio | 34.66 |
| Number Of Stocks | 16 |
Return
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 66.52% | 118.59% | 118.65% |
2: ICICI Prudential Nifty Auto ETF
The ICICI Prudential Nifty Auto ETF tracks the Nifty Auto Index. It gives exposure to top companies in India’s automotive and EV revolution. This fund has been popular among investors looking for broad exposure to the EV sector.
| ETF Symbole | AUTOIETF |
| Current Price | 26.8 (20-08-2024) |
| Expense Ratio | 0.22 |
| Market Cap | NA |
| PE Ratio | NA |
| Number Of Stocks | NA |
Return
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 67.07% | 122.04% | 122.04% |
3: Mirae Asset Mutual Fund – Mirae Asset Nifty EV and New Age Automotive ETF
This new entrant focuses on the same index. It has a unique edge from its management strategy and asset allocation.
| ETF Symbole | EVINDIA |
| Current Price | 33.13 (20-08-2024) |
| Expense Ratio | 0.39 |
| Market Cap | 114 Cr |
| PE Ratio | 42.93 |
| Number Of Stocks | NA |
Return
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| -4.93 % | NA | NA% |
Growth Potential of EV ETFs in India
The growth potential for EV ETFs in India is immense. With initiatives like FAME and more infrastructure investment, the EV market will grow. Tata Motors and Mahindra & Mahindra lead in making EVs. Battery makers and tech firms are vital to the ecosystem.