5 Mutual Funds Investing in EV Stocks

India's electric vehicle (EV) market is no longer in its infancy. It will soon become a full-fledged large industrial sector.

In the last few years, India's EV segment has seen a rapid surge in policy support and private sector participation.

With more than 1.5 million (m) EVs sold in FY24 and the government's resolve towards net-zero emissions, this structural growth story is picking up steam.

As India is looking to be a global leader in EV manufacturing, equity investors are eagerly seeking exposure to these stocks via mutual funds.

Investing in the right mutual funds with high exposure to EV stocks provides a clever and diversified way to profit from this trend.

In this editorial, we have identified the top 5 mutual funds invested in EV stocks.

#1 Bandhan Transportation and Logistics Fund

Bandhan Transportation and Logistics Fund is a sector/thematic equity scheme with an investment bias in mobility, infrastructure, and logistics..

The subject companies have exposure to the EV value chain in significant areas.

Launched in October 2022, the fund invests in stocks likely to gain from greater investments in EVs and its supply chain.

Bandhan Transportation and Logistics Fund has demonstrated robust performance since its inception. However, keep in mind that the fund does not have a long-term track record.

Relative to sectoral/thematic category average, the fund has done exceptionally with a CAGR of 28.54% over 2 years, due to the gains in the stocks of its underlying theme.

The total exposure in EV stocks is 26.88% of its assets, the highest among peers. The largest holdings are of Hero MotoCorp (6.71%), Bosch (5.17%), and Tata Motors (5.02%).

The sectoral exposure is skewed towards automobiles & ancillaries at (74.26%), logistics (8.60%), and aviation (6%).

#2 Aditya Birla SL Transportation and Logistics Fund

Aditya Birla SL Transportation and Logistics Fund Aditya Birla SL Transportation and Logistics Fund seeks to leverage India's growing infrastructure and mobility expansion.

It focuses on trends such as EV adoption, supply chain transformation, and last-mile delivery.

The launch of this scheme points to the fund house's increasing emphasis on opportunities arising from the nation's structural growth themes.

The uniqueness of this fund lies in its objective of capturing not only opportunities in EV manufacturing but also opportunities across the entire transportation value chain-infrastructure and shipping to smart mobility solutions.

The overall exposure to EV stocks is 24.35% of its total assets. The holdings include Tata Motors (8.65%), Samvardhana Motherson International (5.32%), and Hero MotoCorp (4.02%).

Sector-wise, the scheme is titled towards automobiles & ancillaries at (70.44%), retail (9.15%), and aviation (7.23%).

Until May 2025, it has followed the benchmark (Nifty Transportation & Logistics TRI) and has matched peer funds as far as sector distribution is concerned.

Short-term performance must not be taken as a sole decision factor considering the thematic nature of the fund and its sensitivity to market timing.

#3 HDFC Transportation and Logistics Fund

HDFC Transportation and Logistics Fund aims to profit from India's strategic push to clean and efficient transport.

It was launched in August 2023 and its AUM is Rs 12.57 bn. The portfolio is a blend of largecaps (59.94%) and smallcaps (26.14%). Thus, it has exposure to market leaders and new-age disruptors.

The strategy to fund management followed by the fund house is relatively conservative, which seeks growth and quality side by side.

Its exposure to EV stocks is 16.04% of its AUM with the most significant holdings being Bosch (6.39%), Gabriel India (3.52%), and OLA Electric Mobility (2.28%).

Its sectoral exposure is in automobiles & ancillaries at (82.56%), aviation (7.31%), and retail (5.79%).

On the performance side, as a new fund, it has posted steady returns in its first few months, closely tracking its benchmark-Nifty Transportation & Logistics TRI.

#4 UTI Transportation & Logistics Fund

UTI Transportation & Logistics Fund is an older thematic fund within this space, with an track record dating back to April 2004. It has a long and stable performance track record.

The fund has regularly refreshed its portfolio based on sectoral progress. Even as it has maintained stakes in legacy automobile giants, it has also increasingly focused on EV stocks, auto ancillaries, and logistics.

The scheme has delivered a 10-year CAGR of 14% and a 5-year CAGR of 26.88% on a rolling returns basis. As of April 2025, it has an AUM of Rs 34.47 bn.

The exposure to EV stocks is 14.2% of its assets. The largest holdings being Hero MotoCorp (4.78%), Tata Motors (4.01%), and Bosch (1.5%).

The sectoral exposure is tilted towards automobiles & ancillaries at (82.56%), aviation (7.31%), and retail (5.79%).

Unlike newer transportation funds that are more aggressively positioned towards EVs, UTI's fund maintains a balanced exposure between traditional and new-age companies.

#5 Navi Flexi Cap Fund

Navi Flexi Cap Fund, launched in July 2018, is not a sector fund but it has gained traction for its unique quantitative investment strategy and nimble exposure to cutting-edge sectors.

The fund has large, mid, and small cap investments and is attempts to position itself tactically through market cycles.

The exposure to EV stocks is 11.98% of its assets. The top holdings are Bharat Electronics (3.28%), Samvardhana Motherson International (1.67%), and UNO Minda (1.26%).

The sectoral exposure leans in the direction of banking at (16.15%), automobiles & ancillaries (13.43%), and capital goods (8.51%).

The fund's CAGR since inception is 14.58%, which is competitive considering its low expense ratio and peers in the flexi cap space.

Although Navi Flexi Cap Fund is not an EV fund, its flexible approach has resulted in high exposure to high-growth EV-related business.

Mutual Funds with High Allocation to EV Stocks

Scheme Name	Absolute (%)		CAGR (%)			Sharpe	Information Ratio	Up/Down Capture Ratio
	6 Months	1 Year	2 Years	3 Years	5 Years	Ratio
UTI Transportation & Logistics Fund	5.52	30.24	32.17	27.33	26.88	0.39	0.12	0.97
Navi Flexi Cap Fund	4.15	17.89	20.81	15.32	19.31	0.29	-0.13	0.99
Bandhan Transportation and Logistics Fund	5.91	30.72	28.54	-	-	0.38	-0.11	1.08
HDFC Transportation and Logistics Fund	8.53	29.53	-	-	-	0.37	0.03	1.08
Aditya Birla SL Transportation and Logistics Fund	6.35	11.99	-	-	-	0.27	-0.17	0.91

Source: ACE MF

Conclusion

Electric mobility is a structural theme benefiting from policy support and long-term economic significance.

Thematic investors have an opportunity to consider high-conviction themes such as EVs for the long term, via mutual funds. It's not about following a trend. It's about positioning your portfolio in line with the growth sectors of the Indian economy.

For patient investors, properly selected EV-themed mutual funds can be extremely rewarding long-term investments.

Happy Investing.

#Table Note: Data as on June 06, 2025
Past performance is not an indicator of future returns.
Here 'top 5' is based on high exposure to EV stocks.
This list is not exhaustive.
The securities quoted are for illustration only and are not recommendatory.
Rolling Returns in %. Direct Plan - Growth option considered.

Disclaimer: Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.
This article is for information purposes only. It is not a recommendation and should not be treated as such.