6 Best Electric Vehicle EV Mutual Funds in India 2023

Hey there, fellow investor! ๐Ÿš—๐Ÿ’จ Have you noticed the surge in electric vehicles on the roads lately? It’s not just a trend; it’s the future. And guess what? You don’t need to buy an EV to be part of this revolution. How, you ask? Through EV mutual funds!

India’s buzzing with opportunities in the EV sector, and mutual funds are a fantastic way to tap into this potential. Think of it as a ticket to the EV party without the hassle of picking individual stocks. Plus, with the environment thanking you for going green (even with your investments), it’s a win-win!

Now, there are some stellar EV mutual funds out there. One that’s caught my eye is the Axis Value Fund. This fund is all about value investing, which means they’re on the hunt for stocks that are real gems but might be undervalued in the market. And the best part? A good chunk of their portfolio is dedicated to the EV sector. From big names like Tata Motors to emerging stars in the EV scene, they’ve got it covered.

But that’s just a glimpse. Dive deeper, and you’ll find many more funds that are just as exciting. So, if you’re keen on driving (pun intended!) your investments towards a greener future, EV mutual funds might just be your ride. ๐ŸŒฑ๐Ÿ“ˆ

Electric vehicles are the future of transportation. They’re more efficient, environmentally friendly, and cost-effective than gas cars. But before everyone makes the switch to electric vehicles, there needs to be a reliable infrastructure in place to support them. That’s where mutual funds come in. Mutual funds are a great way for everyday investors to get involved in the electric vehicle market. Here are 5 of the best EV mutual funds in India.

1. HDFC Large & Midcap Fund

HDFC-LTD

If you’re looking for a mutual fund that is invested in the electric vehicle market, look no further than HDFC Large & Midcap Fund. With over 130 stocks in its portfolio, and 17 of them being EV-related, this fund is your best bet for a reliable and profitable investment.

Some of the major EV stocks holdings in the fund include Tata Motors, Sona BLW Prcision Forgings, Bharat Forge, Ashok Leyland, Motherson Sumi Systems, Exide Industries, TVS Motor Company, Mahindra & Mahindra, and Hero MotoCorp. So if you’re looking to get involved in the electric vehicle market, HDFC Large & Midcap Fund is your best option.

The HDFC Large & Midcap Fund is predominantly invested in large-cap and mid-cap companies. It aims to maintain a reasonably diversified portfolio at all times. As of March 31, 2022, the fund had an allocation of around 50% to large-caps, around 36% to mid-caps, around 9% to small-caps, and the balance in cash and others. The fund’s EV portfolio currently accounts for about 19.4% of its assets.

2. Axis Value Fund

Axis-Bank-Limited

Axis value fund is one of the best electric vehicle mutual funds. It is a fund that invests in stocks that follow a value investing strategy. This means the fund tries to find stocks that are worth more than their prices. The fund has a portfolio of around 62% largecaps, around 17% midcaps, around 11% smallcaps, and the balance in cash and others. It also has 33 stocks in its portfolio and 8 of these are related to electric vehicles.

The EV portfolio currently makes up about 22% of its assets. Tata Motors and Mahindra & Mahindra are two of the most popular allocations. The fund also invests in auto ancillaries such as Minda Corporation, Mahindra CIE Automotive, and Suprajit Engineering. It also has investments in electric vehicle commodities stocks, as well as charging and infrastructure stocks like Hindalco Industries, Bharat Petroleum Corporation, and Tata Power Company.

3. Templeton India Value Fund

Templeton India Value Fund

Templeton India Value Fund is one of the best electric vehicle mutual funds in India. Templeton India Value Fund was launched in September 2003. The fund follows a value style of investing and has a portfolio that includes many stocks related to electric vehicles. The fund has exited from Mahindra and Mahindra, but has since re-entered the market.

Templeton India Value Fund has a portfolio that is 66% largecaps, 9% midcaps, and 13% smallcaps. The fund also has a portfolio that is 8 stocks related to electric vehicles, accounting for 19.4%.

4. L&T Large & Midcap Fund

Larsen-and-Toubro-Limited

There are a lot of different mutual funds that you can invest in. Some of them are for electric vehicles, and some of them are for regular cars. L&T Large & Midcap Fund is one of the best electric vehicle mutual funds. It invests in companies that make electric cars and also companies that make the parts for electric cars. It’s a good fund to invest in if you want to be part of the electric car industry!

L&T Large & Midcap Fund is a diversified equity fund that seeks to generate long-term capital growth. The fund invests primarily in large- and mid-cap stocks with a minimum allocation of 35% each in large-cap and mid-cap companies.

As of March 31, 2022, the fund’s portfolio was allocated 54% to large-caps, 36% to mid-caps, and 8% to small-caps. The fund holds a fairly diversified portfolio of 56 stocks with exposure to the EV sector through holdings in auto OEMs, ancillaries, and charging infrastructure companies.

The fund’s EV portfolio accounted for 21.9% of its assets as of March 31, 2022. L&T Large & Midcap Fund is a well-diversified equity fund with a focus on generate long-term capital growth.

5. Quantum Long Term Equity Value Fund

Quantum Long Term Equity Value Fund

Quantum Long-Term Equity Value Fund is one of the best electric vehicle mutual funds in India. The fund follows a bottom-up approach to stock picking and invests in companies that can benefit from the growth of the Indian economy.

As of March 31, 2022, around 20% of the fund’s assets were invested in electric vehicles (EVs) and related stocks. Some examples include Mahindra & Mahindra, Bajaj Auto, Eicher Motors, and Hero Motocorp. If you’re looking for a good electric vehicle mutual fund to invest in, Quantum Long-Term Equity Value Fund is a great option.

6. Mirae Asset Global X Artificial Intelligence & Technology ETF Fund of Fund (AI FoF)

Mirae Asset

Mirae Asset Mutual Fund has announced the launch of two new fund offers focusing on electric and autonomous vehicles, as well as artificial intelligence. The new fund offers will be open for subscription from today until August 30.

The Mirae Asset Global Electric & Autonomous Vehicles ETFs Fund of Fund will invest in overseas ETFs that focus on companies from different geographies related to the development of electric and autonomous vehicles, as well as technology, components and materials. With more than US$40 billion in AUM in thematic ETFs, the fund is managed by GlobalX–a leading Provider headquartered in New York.

The Mirae Asset Global X Artificial Intelligence and Technology ETF Fund of Fund will invest in overseas ETFs that are based on companies involved in developing artificial intelligence technology. One of the biggest asset management firms in Asia with over US$120 billion in AUM, Mirae Asset Financial Group’s subsidiary Mirae Asset Global Investments, manages the fund.

Both funds offer investors diversified exposure to cutting-edge industries with high growth potential. For more information, please visit the website of Mirae Asset Mutual Fund.

Summary

Mutual Fund NamePortfolio AllocationKey Features
HDFC Large & Midcap FundLarge-caps: 50%, Mid-caps: 36%, Small-caps: 9%, Others: 5%EV portfolio accounts for about 19.4% of its assets
Axis Value FundLarge-caps: 62%, Mid-caps: 17%, Small-caps: 11%, Others: 10%EV portfolio makes up about 22% of its assets
Templeton India Value FundLarge-caps: 66%, Mid-caps: 9%, Small-caps: 13%, Others: 12%EV-related stocks account for 19.4% of the portfolio
L&T Large & Midcap FundLarge-caps: 54%, Mid-caps: 36%, Small-caps: 8%, Others: 2%EV portfolio accounted for 21.9% of its assets as of March 31, 2022
Quantum Long Term Equity Value FundAround 20% of the fundโ€™s assets were invested in EVs and related stocks
Mirae Asset Global X Artificial Intelligence & Technology ETF Fund of Fund (AI FoF)Offers investors diversified exposure to cutting-edge industries with high growth potential

What are the benefits of investing in electric vehicle mutual funds?

There are several benefits of investing in electric vehicle mutual funds:

  • You can invest in the growth of the electric vehicle industry without having to pick individual stocks. This is especially helpful if you’re not familiar with the industry or don’t have the time to research individual companies.
  • Electric vehicle mutual funds provide diversification. When you invest in a fund, you’re investing in a basket of stocks rather than just one company. This diversification can help minimize risk.
  • Experienced professionals who have access to research and information that individual investors might not have manage many electric vehicle mutual funds.
  • Electric vehicle mutual funds offer the potential for capital appreciation. As the electric vehicle industry grows, the value of these funds is likely to increase.

Conclusion

Electric vehicle mutual funds are a great way to invest in the growth of the electric vehicle industry. These funds offer diversification, professional management, and the potential for capital appreciation. If you’re looking for a good way to invest in electric vehicles, consider investing in one of these funds.

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Gopal Kavalireddi

Head of Stock Market Research @FYERS, Also a contributor in StockIPO, I have more than 10 years of experience in the stock market and investments. I have degrees in M.S., PGPM, and MDP. Also manages the financial portfolios of my clients. I talk about finance and help newbies in the stock market.

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