Groww Mutual Fund has announced the launch of its New Fund Offerings (NFOs) for the Groww Nifty EV & New Age Automotive ETF and the Groww Nifty EV & New Age Automotive ETF FOF.

The NFO for the Groww Nifty EV & New Age Automotive ETF will be available until August 2, 2024, while the Groww Nifty EV & New Age Automotive ETF FOF will be open from July 24 to August 7, 2024.

The Indian government has supported the Electric Vehicle (EV) sector with several initiatives.

The Electric Mobility Promotion Scheme 2024 has allocated ₹500 crore from April 1 to July 31, 2024, to boost the adoption of electric two-wheelers and three-wheelers.

Additionally, the government aims for 30% of vehicles to be electric by 2030, with annual sales projected to exceed 16 million units.

Approximately ₹18,000 crores have been set aside to enhance EV battery production.

Both funds will track the Nifty EV & New Age Automotive Index – TRI, which reflects the performance of companies in the EV sector or those involved in developing new-age automotive technologies.

The index monitors around 33 companies from the Nifty 500 index engaged in EV manufacturing, hybrid and hydrogen fuel vehicles, charging infrastructure, and battery production.

Varun Gupta, CEO of Groww Asset Management Ltd, stated, “With the rapid growth in the electric vehicle sector, these new funds aim to offer investors opportunities to benefit from this dynamic and evolving industry. Our ETF and FOF are designed to help investors capitalize on the future of electric mobility and related technologies, providing exposure to a diverse portfolio of companies driving innovation in the EV ecosystem.”

India’s push towards sustainability is evident as transportation contributes 13.5% of the country’s total carbon emissions.

The shift to electric vehicles is crucial, with EV sales in India nearly doubling in 2023, reaching 2% of all passenger vehicle sales.