3 EV Mutual Funds to Watch: Tap into India's Electric Mobility Revolution

India's EV Ecosystem: From Automobile Theme to Structural Investment Opportunity

India's EV market, although still at a nascent stage, is witnessing a steady rise in adoption across vehicle categories.

Electric 2-wheelers account for the largest share of EV registrations, while passenger vehicles, buses and commercial fleets are also gaining momentum as charging infrastructure expands and battery costs gradually decline.

Government initiatives such as the PM E-DRIVE Scheme, the Production Linked Incentive (PLI) programmes for Advanced Chemistry Cells and automobiles, along with state-level EV policies, are encouraging domestic manufacturing, localisation and infrastructure development.

Industry estimates suggest that India's EV market could expand at a CAGR of over 25% during this decade, making it one of the fastest-growing segments within the broader automobile industry.

From an investment perspective, the EV opportunity extends beyond automobile manufacturers. The transition towards electric mobility is expected to create value across a wide ecosystem comprising battery manufacturers, auto component companies, power electronics, specialty chemicals, charging infrastructure providers, industrial automation firms, and technology-enabled mobility businesses.

As the industry matures, several ancillary players are expected to grow due to rising localisation, increasing capital expenditure and stronger demand for EV-specific components.

This value chain offers investors multiple avenues to participate in the electrification megatrend rather than hoping for the success of a few automobile companies.

Despite its favourable long-term outlook, the EV segment is still evolving. Competitive intensity, technological disruption, battery chemistry innovations, commodity price fluctuations and changing policy support may periodically influence business performance and market sentiment.

The Indian mutual fund industry has gradually responded to this emerging opportunity by launching dedicated EV-focused schemes that invest either in domestic companies or through passive strategies tracking EV-centric indices.

Some also provide exposure to global leaders driving innovation in electric and autonomous mobility.

Here, we examine some of the prominent EV-focused mutual funds and ETFs available to Indian investors, highlighting their investment approach and portfolio characteristics.

#1 Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF

Unlike domestic EV-focused funds, this Fund of Fund offers investors exposure to the global electric mobility ecosystem by investing in overseas ETFs tracking companies involved in electric vehicles, battery technology, autonomous driving, semiconductors and next-generation mobility solutions.

The portfolio provides access to global innovators that are driving advancements across the EV value chain, many of which are not represented in the Indian equity market.

This geographical diversification could help investors participate in the broader global electrification trend while reducing concentration in a single market.

However, investors should recognise that the fund's performance is influenced not only by the underlying global EV sector but also by international market conditions, currency movements and overseas regulatory developments.

Given the higher volatility typically associated with emerging technologies and growth-oriented sectors, the scheme is best suited for investors seeking long-term global thematic exposure as a satellite allocation within their equity portfolio.

#2 SBI Automotive Opportunities Fund

The SBI Automotive Opportunities Fund is an actively managed sectoral fund that seeks to capitalise on opportunities across the automotive and mobility ecosystem.

Unlike passive EV funds, the fund manager has the flexibility to allocate across automobile manufacturers, auto ancillaries, component suppliers and emerging beneficiaries of the electric mobility transition.

This allows the portfolio to adapt to evolving industry dynamics while capturing opportunities arising from both conventional automotive businesses and the gradual shift towards electrification.

The portfolio reflects a high-conviction strategy, with Mahindra & Mahindra (15%) as the largest holding, followed by Eicher Motors, Maruti Suzuki India, TVS Motor Company and Bharat Forge.

The fund complements its exposure to leading OEMs with auto ancillary companies such as Samvardhana Motherson and Sona BLW Precision Forgings, providing diversified participation across vehicle manufacturing, precision engineering and EV component manufacturing.

#3 Mirae Asset Nifty EV & New Age Automotive ETF

The Mirae Asset Nifty EV & New Age Automotive ETF passively tracks the Nifty EV & New Age Automotive Index, providing diversified exposure to companies expected to benefit from India's evolving electric mobility ecosystem.

The index-based strategy eliminates active stock selection risk while offering broad participation across automobile manufacturers, auto ancillaries, industrials and electrical equipment companies linked to the EV value chain.

The portfolio's largest holdings include Maruti Suzuki India (7.48%), Mahindra & Mahindra (7.13%), CG Power & Industrial Solutions, Samvardhana Motherson International and KEI Industries.

The presence of companies across automobiles, capital goods and electrical equipment reflects the index's objective of capturing opportunities across the broader EV ecosystem rather than limiting exposure solely to vehicle manufacturers.

#4 Groww Nifty EV & New Age Automotive ETF

Groww Nifty EV & New Age Automotive ETF follows the Nifty EV & New Age Automotive Index, offering investors a passive and cost-efficient avenue to participate in India's electric mobility theme.

The scheme provides diversified exposure across the EV value chain through a transparent, rules-based investment strategy, making it suitable for investors seeking long-term thematic exposure without active fund management risk.

As the ETF tracks the same benchmark, its portfolio composition closely resembles other Nifty EV & New Age Automotive ETFs.

Its key holdings include Maruti Suzuki India (7.49%), Mahindra & Mahindra (7.14%), CG Power & Industrial Solutions, Samvardhana Motherson International, and KEI Industries, representing businesses expected to benefit from rising EV adoption, localisation and increasing demand for automotive components and electrical infrastructure.

#5 ICICI Prudential Nifty EV & New Age Automotive ETF

The ICICI Prudential Nifty EV & New Age Automotive ETF also tracks the Nifty EV & New Age Automotive Index, providing investors with diversified exposure to companies across India's electric mobility ecosystem.

The passive investment strategy seeks to replicate the benchmark's performance while capturing long-term structural opportunities emerging from electrification, localisation, and technological advancements in the automotive sector.

The ETF's top holdings comprise Maruti Suzuki India (7.47%), Mahindra & Mahindra (7.13%), CG Power & Industrial Solutions, Samvardhana Motherson International, and KEI Industries.

Together, these companies provide exposure to key segments of the EV value chain, including automobile manufacturing, electrical equipment, industrial electrification and auto components, thereby offering diversified participation in India's evolving mobility landscape.

Conclusion

The electric mobility ecosystem represents one of the most compelling long-term structural themes within the broader manufacturing and industrial landscape.

Government policies, technological advancements, localisation initiatives, and rising consumer adoption strengthen the sector's prospects, but the EV investment universe in India is still evolving.

Consequently, dedicated EV-focused mutual funds and ETFs remain a relatively young category with limited performance history.

Rather than evaluating these schemes solely on past returns, investors should focus on their investment mandate, portfolio construction, diversification across the EV value chain, and how they fit within an overall asset allocation strategy.

Although thematic investing inherently carries higher volatility than diversified equity funds, EV-focused schemes offer investors a convenient avenue to participate in one of the most significant structural shifts reshaping the automotive and manufacturing landscape.

Happy investing.

Disclaimer: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, enlistment as RA and IA with Exchange and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.