India’s real estate and automobile sectors are growing at a rapid pace, offering significant opportunities for investors. If you’ve been eyeing these sectors, now is the time to act. Nippon India Mutual Fund has introduced two new index funds focusing on these booming industries.
The Nippon India Nifty Auto Index Fund and the Nippon India Nifty Realty Index Fund are open for subscription from November 14, 2024, to November 28, 2024. These funds are designed for investors seeking diversified, low-cost, and transparent exposure to the auto and real estate sectors.
What Are These Funds About?
- Nippon India Nifty Auto Index Fund
- This fund tracks the Nifty Auto Index, offering exposure to India’s growing automobile sector.
- It invests in stocks of passenger vehicle manufacturers, two-wheeler and three-wheeler companies, commercial vehicle makers, and automotive component producers.
- Nippon India Nifty Realty Index Fund
- This fund mirrors the Nifty Realty Index, providing access to India’s thriving real estate industry.
- It invests in leading companies involved in property development, housing, and commercial real estate projects.
As both are passive funds, they aim to replicate the performance of their respective indices, offering benefits like low expense ratios, transparency, and broad diversification.
Why Invest in the Auto Sector Now?
India’s automobile sector contributes 7.1% to the GDP, making it a crucial industry. With the rise of electric vehicles (EVs), the sector is expected to grow exponentially:
- EV Market Growth: By FY 2030, EV penetration is projected to reach 40%, driven by government incentives and falling battery costs.
- Strong Returns: The Nifty Auto Index TRI delivered a 48.7% CAGR in the last year, outperforming the broader Nifty 50 Index over 3- and 5-year periods.
Real Estate: A Powerhouse for Growth
The real estate industry is India’s second-largest employment generator and contributes 18% of total jobs. The market is poised for a compound annual growth rate (CAGR) of 13.8% between 2017 and 2047.
- Long-Term Growth: The sector’s size is expected to grow 48 times in the next 30 years.
- High Returns: The Nifty Realty Index TRI recorded a 66% CAGR in the past year, over twice the returns of the Nifty 50 Index.
Why Choose These Funds?
- Sectoral Growth Potential: Both auto and real estate sectors show strong growth trajectories, making them attractive for medium- to long-term investments.
- Cost Efficiency: Being passive funds, they come with lower management fees compared to actively managed funds.
- Diversification: Invest in multiple companies within a single sector through one fund.
- Transparency: These funds strictly follow their respective indices, ensuring predictable performance tracking.
Hurry, as this New Fund Offer (NFO) closes on November 28, 2024.
