Mutual funds are the greatest way for building long-term wealth. With EV mutual funds, investors can ride the growth of the Indian electric vehicle industry. There are more than 2,500 mutual fund schemes in India, and finding only ev related funds can be challenging for an investor. That is why in this article, we have researched for days, and got top mutual funds from the top AMCs. So, that further you can directly look into them without too much effort.
Here we will go from basic to advanced information related ev funds. And till the end of this article, you will grab so many details related to those mutual funds. Also, in the end, there are some suggested ev funds included for the different types of investors.
Table of Contents
What are EV Mutual Funds?
Electric Vehicle Mutual Funds are Sectoral/Thematic investment funds that primarily focus on companies involved in the electric vehicle sector. To become a fully EV sectoral mutual fund, AMCs need to diversify their investment to different EV related companie’s stocks. The Indian EV revolution has just started and the future growth is exponential as the government is also supporting green energy in the country.
If you directly search for “EV Fund” on your investing app, you may not see many funds related to this sector. Because there are few AMCs that listed their fund as EV fund. So, we need to research our own way to find those funds that invest most of their allocation in the electric vehicle sector.
Thankfully, NSE launches Nifty EV & New Age Automotive Index that track the performance of the companies which are active in electric vehicles or new age automotive vehicles segment. It means, now investors can invest in the EV revolution through a mutual fund that tracks this index.
Difference between Active and Passive EV Mutual Funds
Like other funds, electric vehicle related funds are also passively and actively managed. First let us talk about passive ev funds. These funds usually track a market index or ETF. Which means if the index or ETF price increases, then the mutual fund’s NAV will also increase. There are not too many roles for fund managers, as they do not need to research stocks. That is why investing in ev index fund or an ETF FoF can offer you a lower expense ratio.
Where actively managed funds are different. Fund managers regularly track stock performance, adjust their weightage, even remove under performing stock and replace them with top performing ev stocks. Because of its active management, it can give higher returns. These types of active ev funds also charge a higher expense ratio than passive funds.
Usually, actively managed funds are preferred, as managers have the power to choose the best stocks for investors. In passive ev funds, if the fund underperforms, the manager cannot change its holding ev stocks, as they need to follow the specific index or ETF.
Below, there are 8 EV mutual funds with maximum exposure to the upcoming EV revolution in India. All of these mutual funds are available with a Direct Growth plan. Which charges less expense ratio then the regular plan. Below, we have included the funds details and the top 10 holdings of each fund.
1. Groww Nifty EV & New Age Automotive ETF FoF
This is a passively managed mutual fund that invests in Groww Nifty EV & New Age Automotive ETF. Where this ETF tracks Nifty EV & New Age Automotive Index. It means, Groww Nifty EV & New Age Automotive ETF FoF will work as an index fund for those investors who want to invest in Nifty EV & New Age Automotive Index.
The fund was launched in August 2024 by the fund house Groww Mutual Fund. Groww is known for its Stock Broking services in the Indian share market.
This FOF invest in Groww Nifty EV & New Age Automotive ETF, and its benchmark is Nifty EV and New Age Automotive Index. So, to check company’s stocks holdings, we need to check the stocks of the Index. Here, below the top 10 holdings of Nifty EV and New Age Automotive Index:
| Stocks | Weightage |
|---|---|
| Tata Motors Ltd | 9.84% |
| Bajaj Auto Ltd | 8.61% |
| Maruti Suzuki India Ltd | 7.81% |
| Mahindra & Mahindra Ltd | 7.36% |
| L&T Technology Services Ltd | 4.51% |
| KPIT Technologies Ltd | 4.39% |
| Tata Elxsi Ltd | 4.30% |
| Sona BLW Precision Forgings Ltd | 4.11% |
| Reliance Industries Ltd | 3.96% |
| Samvardhana Motherson International Ltd | 3.86% |
Groww Nifty EV & New Age Automotive ETF FoF is a good choice for those investors looking to invest in the EV revolution through an index fund. As a passively managed fund, it reduces the risk. But it also limits the returns. For more aggressive investors looking for actively managed funds, here are the other ev mutual funds that regularly try to beat the market through active investing.
As EV sectors mainly depend on vehicles, investors can look into the Transportation & Logistics, and Automotive funds. These funds hold most of the electric vehicle related stocks.
2. UTI Transportation and Logistics Fund
UTI Transportation and Logistics Fund is one of the oldest mutual funds in the Transportation sector. It was launched in January 2013. This fund is an actively managed fund with a long period of historical track record. In the last five years, the fund has given more than 246% of return and 28% CAGR.
| Stocks | Weightage |
|---|---|
| Mahindra & Mahindra Ltd | 13.27% |
| Tata Motors Ltd | 11.24% |
| Maruti Suzuki India Ltd | 9.01% |
| Bajaj Auto Ltd | 8.67% |
| Eicher Motors Ltd | 7.52% |
| Hero Motocorp Ltd | 5.57% |
| Net Current Assets | 5.29% |
| Adani Ports and Special Economic Zone Ltd | 4.89% |
| Interglobe Aviation Ltd | 4.75% |
| TVS Motor Company Ltd | 2.76% |
3. Aditya Birla Sun Life Transportation and Logistics Fund
Aditya Birla Capital is a well-known company in the mutual fund industry. The fund house launched their fund “Aditya Birla Sun Life Transportation and Logistics” in November 2023, which holds most of the EV stocks. As a new fund, there is no track record of longer periods of time. But if we check its last 6 months performance between 2023-24, it’s definitely beating the UTI Transportation and Logistics Fund.
| Stocks | Weightage |
|---|---|
| Tata Motors Ltd | 10.47% |
| Mahindra & Mahindra Ltd | 9.07% |
| Maruti Suzuki India Ltd | 7.56% |
| Bajaj Auto Ltd | 6.76% |
| Zomato Ltd | 6.51% |
| Hero Motocorp Ltd | 5.88% |
| Interglobe Aviation Ltd | 5.51% |
| Samvardhana Motherson International Ltd | 5.21% |
| TVS Motor Company Ltd | 3.72% |
| Ashok Leyland Ltd | 3.57% |
4. HDFC Transportation and Logistics Fund
HDFC Transportation and Logistics Fund is a new and best performing mutual fund in ev sector. It was launched in August 2023 and given more than 63% of return within a year. The fund charges higher expense ratio then other funds in this sector, which can attract those investors who trust on highly experienced fund managers, and fund house resources, rather than the past performance.
| Stocks | Weightage |
|---|---|
| Tata Motors Ltd | 8.89% |
| Mahindra & Mahindra Ltd | 7.83% |
| Eicher Motors Ltd | 7.38% |
| Maruti Suzuki India Ltd | 6.92% |
| Zomato Ltd | 6.10% |
| Bajaj Auto Ltd | 5.97% |
| Interglobe Aviation Ltd | 5.89% |
| Ola Electric Mobility Ltd | 5.17% |
| Bosch Ltd | 4.67% |
| Balkrishna Industries Ltd | 4.11% |
5. ICICI Prudential Transportation and Logistics Fund
ICICI Prudential is also a popular mutual fund management company among investors. They launched ICICI Prudential Transportation and Logistics Fund in October 2022. It is also a top performing mutual fund in the sector. In the last one year (2023-24), it has given more than 59% return.
| Stocks | Weightage |
|---|---|
| Mahindra & Mahindra Ltd | 12.24% |
| Maruti Suzuki India Ltd | 9.89% |
| TVS Motor Company Ltd | 9.68% |
| Zomato Ltd | 7.72% |
| Tata Motors Ltd | 6.86% |
| Eicher Motors Ltd | 6.36% |
| Interglobe Aviation Ltd | 4.13% |
| Adani Ports and Special Economic Zone Ld | 4.03% |
| Bharat Forge Ltd | 3.23% |
| Bajaj Auto Ltd | 3.00% |
6. ICICI Prudential Nifty Auto Index Fund
For those looking for an EV Index fund, ICICI Prudential Nifty Auto Index Fund could be a best choice. This passive index fund tracks Nifty Auto Index, which gives more than 60% return between 2023-24 for a year. Usually, investors expect a stable return from index funds, but the Nifty Auto Index fund gives an unexpected higher return. This is because of the diversification of the index.
| Stocks | Weightage |
|---|---|
| Mahindra & Mahindra Ltd | 22.01% |
| Tata Motors Ltd | 18.86% |
| Maruti Suzuki India Ltd | 13.25% |
| Bajaj Auto Ltd | 9.84% |
| Hero Motocorp Ltd | 5.73% |
| Eicher Motors Ltd | 5.50% |
| TVS Motor Company Ltd | 5.30% |
| Motherson Sumi Systems Ltd | 4.28% |
| Bharat Forge Ltd | 3.29% |
| Ashok Leyland Ltd | 2.98% |
Note that this type of diversification may make a fund more volatile.
From the above holding table, it is clear that in the Nifty Auto Index, the stocks Mahindra & Mahindra Ltd, Tata Motors Ltd, and Maruti Suzuki India Ltd’s weightage is very high. So, if those stocks grow, then it can give good returns. On the other hand, if any of those stocks underperform, it may also lead to lower performance of the index.
7. Bandhan Transportation and Logistics Fund
Bandhan is known for its financial services, especially banking services. The company is also popular among investors, as they provide various mutual fund schemes. As we are looking for an EV mutual fund, Bandhan Transportation and Logistics Fund is that fund. Launched in October 2022, it has provided more than 55% return in a one year timeframe between 2023-24.
| Stocks | Weightage |
|---|---|
| Maruti Suzuki India Ltd | 9.80% |
| Mahindra & Mahindra Ltd | 9.43% |
| Tata Motors Ltd | 8.87% |
| Hero Motocorp Ltd | 5.50% |
| Bosch Ltd | 4.90% |
| Interglobe Aviation Ltd | 3.65% |
| Eicher Motors Ltd | 3.33% |
| Bajaj Auto Ltd | 2.56% |
| Rane Holdings Ltd | 2.35% |
| Great Eastern Shipping Co. Ltd | 2.24% |
8. SBI Automotive Opportunities Fund
State Bank of India’s Automotive Opportunities Fund is a sectoral fund holding most of the electric vehicle stocks. This fund is an active mutual fund that try to beat its benchmark NIFTY Auto TRI. Investors who want to join the EV revolution through investing in an actively managed fund, and expect better returns than the NIFTY Auto Index, can look at the SBI Automotive Opportunities Fund. This is a bigger fund in terms of AUM.
| Stocks | Weightage |
|---|---|
| Mahindra & Mahindra Ltd | 15.19% |
| Tata Motors Ltd | 11.70% |
| Maruti Suzuki India Ltd | 10.45% |
| Bajaj Auto Ltd | 6.55% |
| TVS Motor Company Ltd | 6.35% |
| Hero Motocorp Ltd | 5.74% |
| Treps | 4.06% |
| Samvardhana Motherson International Ltd | 3.52% |
| ZF Commercial Vehicle Control Systems India | 3.51% |
| Ashok Leyland Ltd | 3.47% |
EV Mutual Funds and Their Benchmark
| Fund Name | Benchmark |
|---|---|
| Groww Nifty EV & New Age Automotive ETF FoF | Nifty EV and New Age Automotive TRI |
| UTI Transportation and Logistics Fund | Nifty Transportation & Logistics TRI |
| Aditya Birla Sun Life Transportation and Logistics Fund | Nifty Transportation & Logistics TRI |
| HDFC Transportation and Logistics Fund | Nifty Transportation & Logistics TRI |
| ICICI Prudential Transportation and Logistics Fund | Nifty Transportation & Logistics TRI |
| ICICI Prudential Nifty Auto Index Fund | NIFTY Auto TRI |
| Bandhan Transportation and Logistics Fund | Nifty Transportation & Logistics TRI |
| SBI Automotive Opportunities Fund | NIFTY Auto TRI |
Which EV Mutual Fund is Best?
In this article, we have mentioned 8 ev mutual funds. But the question is which one is better? The answer will be different for different types of investors. Because some investors invest in index funds, where some investors give priority to higher expense ratio, where some investors prefer a lower expense ratio. Some investors also look at the past performance. So, here we have divided some funds for different types of investors.
Looking for an EV Index Fund?
- ICICI Prudential Nifty Auto Index Fund
- Groww Nifty EV & New Age Automotive ETF FoF
Prefer Higher AUM EV mutual fund?
- SBI Automotive Opportunities Fund
Prefer Higher Expense ratio fund?
- HDFC Transportation and Logistics Fund
Prefer Lower Expense ratio fund?
If you prefer a lower expense ratio, then index EV mutual funds could be a better choice. They are passively managed and require a lower expense ratio. But if you prefer an actively managed fund, then the Aditya Birla Sun Life Transportation and Logistics Fund offers a lower expense ratio in the active fund category.
Prefer an EV mutual fund with long time past performance?
- UTI Transportation and Logistics Fund
Why You May Consider Investing in EV Mutual Funds?
Before knowing why you may invest, it is important to know which type of investor can consider these mutual funds. As you know, EV mutual funds are sectoral funds and they can provide better returns than the market index (Nifty 50). Also, sectoral funds come with high risk, because the fund houses invest only in particular themes or categories. So, as an investor, if you can determine the future growth of a particular sector, then you can beat the market index by investing in those sectoral funds.
As Electric Vehicles and Green energy sectors are continuously evolving in our country, it gives investors an opportunity to grow their capital by investing in this sector.
If you are a type of investor who expects higher return, with an extended risk, then EV mutual funds may be considered. Because, with those funds you are investing not only in the EV sector, but also in India’s top EV vehicle manufacturing companies like Tata Motors, Maruti Suzuki India, Bajaj Auto, TVS Motor, etc.
At last, we want to inform you that the motive of this article is to give you the top ev mutual funds. We do not give any investment advice. Make sure to consult with a professional before investing. Further, comment on your feedback, and let us know what is your opinion about the EV revolution in India.
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