Nippon India Mutual Fund has announced the launch of two new funds in the passive space. These new fund offers are based on auto and realty themes. Both the funds are open-ended index funds, whose NFO opens on November 14, 2024 and will close on November 28.
Nippon India Nifty Auto Index Fund is a passive fund that will track the performance of the Nifty Auto index, while Nippon India Nifty Realty Index Fund will track the Nifty Realty index.
You will get good returns at low risk
Both of these are passive funds, they will invest in the securities of their respective underlying indexes. Being passive, these funds have some benefits for investors, such as lower costs, diversification through a single unit and transparency, as both the funds will mimic their respective indexes.
India’s automobile sector contributes 7.1% to the country’s gross domestic product (GDP). The industry is diverse, including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and automotive component manufacturers. Demand for electric vehicles (EVs) is increasing, driven by government incentives, falling battery costs and rising petrol and diesel prices. EV penetration in India is expected to reach 40% by financial year 2030, which will lead to growth of the auto sector.
Your investment will be invested here
Nifty Auto Index TRI has given a CAGR of 48.7% in the last one year, while Nifty 50 TRI has given a CAGR of 28.3% till October 31, 2024. Nifty Auto TRI has outperformed Nifty 50 TRI in 3 and 5 year periods.
The country’s real estate market is projected to grow at a CAGR of 13.8% between 2017 to 2047, representing a whopping growth of 48 times in 30 years. The Indian real estate industry is the second largest generator of employment, contributing 18% to total employment.
Nifty Realty Index TRI has returned 66% CAGR in the last one year, which is 2.3 times more than Nifty 50 TRI in the same period. It has also outperformed Nifty 50 on the basis of CAGR in the period of 3, 5 and 10 years till October 31.
Government policies, rising incomes, urbanisation, favorable demographics and a middle-class population with rising purchasing power, as well as access to easy financial options, are important catalysts for the growth of both these sectors.
