The asset manager of Nippon India Mutual Fund (NIMF), Nippon Life India Asset Management Limited, has announced the introduction of India's First Auto Sector ETF, the Nippon India Nifty Auto ETF. The Auto ETF is a closed-end fund that follows the Nifty Auto Index.
India, Nippon The Nifty Auto ETF will invest in equities that make up the Nifty Auto Index in the same proportion that the Index does. According to the fund house, it would give exposure to the Top 15 (as per Nifty Auto Index methodology) firms in the auto-related sectors of Automobiles 4 wheelers, Automobiles 2 & 3 wheelers, Auto Ancillaries, and Tyres.
On January 5, 2022, the new fund offer (NFO) will begin and end on January 14, 2022. The minimum investment amount required for the New Fund Offer (NFO) is $1,000, with subsequent investments in multiples of Re 1.
The ETF will be tracking the Nifty Auto TRI index in order to deliver investment returns nearly equivalent to the total returns of the stocks as represented by the Nifty Auto Index before expenditures, subject to tracking error.
However please note, there can be no assurance or guarantee that the Scheme's investment goal will be met.
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