auto component manufacturers, electric mobility and companies with auto export potential. The fund house, meanwhile, claims that this is an indicative list. The classification of companies following the automotive and allied business activities will be largely guided by the Association of Mutual Funds in India's (AMFI) basic industry classification.
The scheme-related document lists 134 companies as investment universe, with the maximum number (85) in the category of 'auto components & equipment', followed by 'castings & forgings', which has 11 companies. ALSO READ | Mutual funds go on a shopping spree, pumping $35 billion into top companies The fund may also invest in semiconductor and electronics companies catering to auto companies. This is a thematic mutual fund which is aimed at generating long-term capital appreciation for unit holders from a portfolio of equity and equity-related instruments of companies engaged in automotive and allied business activities.
The minimum application is ₹5,000 and in multiples of Re 1 thereafter. Those who plan to invest via SIP may invest a minimum of ₹500 and in multiples of Re 1. No, there are no similar mutual funds in the market.
The scheme will be benchmarked against Nifty Auto TRI. There is an exit load if the units are redeemed or switched out within one year of the allotment date. The exit load, in this case, would be 1 per cent of the applicable NAV.
The scheme's fund manager is Tanmaya Desai. ALSO READ | Switching SIPs Annually? Here’s why you might be losing out The scheme's risk-o-meter indicates a very high risk, which means that the investors understand that their principal will be at a very high risk. Moreover, investors are advised to consult their financial advisor
. Read more on livemint.com