Axis Mutual Fund will launch an index fund tracking the Nifty EV & New Age Automotive Index on October 16, offering investors exposure to companies across the electric vehicle and broader automotive technology value chain.
The new fund offer (NFO) for the Axis Nifty EV & New Age Automotive Index Fund will remain open until October 30, the fund house said on October 15.
The open-ended scheme will seek to replicate the performance of the Nifty EV & New Age Automotive Total Returns Index (TRI), subject to tracking error. As a passive fund, it will invest in companies forming part of the underlying index rather than actively selecting stocks based on the fund manager’s market outlook.
The minimum investment amount is ₹100, with additional investments permitted in multiples of ₹1. The scheme will levy an exit load of 0.25% on redemptions or switches made within 15 days of allotment. No exit load will apply thereafter.
Nandik Malik and Rohit Gautam will manage the fund.
What does the index track?
The Nifty EV & New Age Automotive Index comprises eligible companies from the Nifty 500 universe that operate across the electric mobility and new-age automotive ecosystem. These include vehicle manufacturers, battery makers, auto component suppliers, raw material companies and providers of advanced automotive technologies, along with eligible companies covered under specified government schemes.
As of September 30, 2026, large-cap stocks accounted for 44% of the index, while mid-cap and small-cap stocks made up 29% and 27%, respectively. The index is reconstituted and rebalanced twice a year, in March and September.
According to the fund house, electric vehicle penetration in India increased from less than 1% in FY21 to 9.4% in FY26.
B Gopkumar, managing director and chief executive officer of Axis Asset Management Company, said the shift towards electric mobility has implications for domestic manufacturing, energy security and automotive technology.
The fund provides a single investment route to the companies represented in the index. However, its returns will depend on the performance of the underlying stocks, and the thematic focus could expose investors to risks associated with the automotive industry and the adoption of electric mobility.
As with other equity investments, returns are not guaranteed, and the scheme may underperform the broader equity market during certain periods.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.