Nippon Life India Asset Management Limited has applied for an open-ended plan that will look to replicate or track the S&P Kensho Electric Vehicle Index, which is measured by the performance of companies involved in the electric vehicle sector and the ecosystem that supports it. is designed to measure.
S&P Kensho Electric Vehicles Index was launched on 17th September 2018 and has given an annual return of around 40% over the last three years.
The index intends to represent companies that focus on the production of electric road vehicles and related subsystems, powertrains, energy storage systems, clean fuel technology (such as hydrogen fuel cells) and charging infrastructure.
Of the 44 companies in the S&P Kensho Electric Vehicles Index, the top five constituents are Aspen Aerogels Inc (6.37%), Lee Auto Inc (3.75%), Xpung Inc (3.45%), Fisher Inc (3.22%) and Tesla Inc. 3%).
From India, only Tata Motors Limited is part of the index.
Country-wise, the US has the largest weightage at 30%, followed by China at 5%, Canada at 3% and Japan at 2%.
Indians have started focusing on electric vehicles as an investment theme over the past year, with many investors looking to US-based electric-car maker Tesla Inc.
Mutual funds have also started paying attention to this topic. Prior to Nippon India, two asset management companies had applied for an EV themed fund.
Sachin Bansal-backed Navi AMC Ltd had last month filed draft documents for a fund of funds (FOF) based on electric vehicles and driving technology.
Navi Electric Vehicles & Driving Technology FoF would like to invest in units of foreign exchange-traded funds (ETFs) and/or index funds based on the STOXX Global Electric Vehicles & Driving Technology NET Index.
The index has 90 constituents, including Tesla Inc., NVIDIA Corp. and Toyota Motor Corp.
Earlier this month, Mirae Asset Mutual Fund applied for the Mirae Asset Electric & Autonomous Vehicles ETF (FOF), a foreign equity ETF that would invest in companies involved in the development of electric and autonomous vehicles and related technology, components and materials. are based on. The scheme will be benchmarked to the Selective Autonomous and Electric Vehicles Index.
Investors should note that these theme-based schemes carry a lot of investment risk.
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