Nippon India Mutual Fund launches passive funds tracking auto and realty sectors

Nippon India Mutual Fund has launched two passive investment vehicles: the Nifty Auto Index Fund and the Nifty Realty Index Fund. These offerings track their corresponding Total Return Indices, providing investors an investment opportunity in these expanding sectors.

Arun Sundaresan, Head of ETF at Nippon India Mutual Fund, remarked, "The combination of government policies, rising income levels, urbanization, and an empowered middle class with greater purchasing power has fueled growth in both sectors."

These open-ended new fund offers (NFOs) are open for subscriptions from November 14 to November 28, 2024.

The Auto Index Fund focuses on India's automotive industry, which represents 7.1% of the country's GDP. The sector shows strong advancement with increased vehicle purchases across segments, supported by governmental programmes like the Production Linked Incentive scheme and EV initiatives. The Nifty Auto Total Return Index (TRI) showed a 48.7% CAGR through October 31, 2024, surpassing the Nifty 50 TRI's 28.3%.

The Realty Index Fund concentrates on the property sector, contributing 7.3% to GDP and ranking as the second-largest employment provider in India. Strengthened by legislative measures like the RERA Act and the Smart Cities Mission, the industry has grown across housing, business, and hospitality segments. The Nifty Realty TRI achieved a 66% CAGR over the past year, exceeding the Nifty 50 TRI's performance by more than twice.

Ready to Master Stock Valuation? ET’s Workshop is just around the corner!