Axis Mutual Fund to launch EV and new-age automotive index fund tomorrow
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Axis Mutual Fund will launch the Axis Nifty EV & New Age Automotive Index Fund on October 16, offering investors passive exposure to companies across the electric vehicle (EV) and new-age automotive ecosystem. The fund is positioned as India's first index fund tracking the Nifty EV & New Age Automotive Index.
The open-ended equity scheme will aim to replicate the performance of the Nifty EV & New Age Automotive Total Return Index (TRI), subject to tracking error. The new fund offer (NFO) will close on October 30, 2026.
B Gopkumar, managing director and chief executive officer of Axis Asset Management Company, said India's transition to electric mobility was reshaping the automotive industry, with implications for energy security, domestic manufacturing and technological innovation.
“Improving EV economics, technological advancements, and supportive policy measures are further driving adoption. We believe these developments are reshaping the automotive industry and creating long-term opportunities across its supporting ecosystem,” Gopkumar said.
He added that the fund would provide a rules-based investment avenue covering different segments of the automotive value chain and strengthen the fund house's passive investment offerings.
What does the Nifty EV & New Age Automotive Index track?
EV penetration in India increased from less than 1% in FY21 to 9.4% in FY26, according to the fund house. The Nifty EV & New Age Automotive Index tracks companies involved in electric vehicles and new-age automotive technologies.
The index selects eligible companies from the Nifty 500 universe based on prescribed liquidity and eligibility criteria. Its methodology covers six segments: vehicle manufacturers, battery makers, component manufacturers, raw material suppliers, advanced automotive technology providers, and eligible companies under specified government schemes.
As of September 30, 2026, large-cap companies accounted for 44% of the index, while mid-cap and small-cap companies made up 29% and 27%, respectively. The index is reconstituted and rebalanced twice a year, in March and September.
How will the fund invest?
The Axis Nifty EV & New Age Automotive Index Fund will seek to generate returns, before expenses, in line with the Nifty EV & New Age Automotive TRI, subject to tracking error. It will invest in the constituents of the underlying index, offering exposure to companies across the electric mobility value chain through a single fund.
As a passive scheme, its portfolio will broadly mirror the benchmark, with adjustments made in line with changes to the index. The fund will allow investors to access the automotive sector's transition, including developments in EV technology, battery economics and charging infrastructure, without having to select individual stocks.
The scheme is intended for investors seeking long-term wealth creation through thematic equity exposure. However, returns will depend on market performance, and there is no assurance that the investment objective will be achieved.