ICICI Pru Nifty EV & New Age Automotive ETF FOF(IDCW Payout)
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Business Overview
The ICICI Pru Nifty EV & New Age Automotive ETF FOF is a focused investment option designed for investors looking to capitalize on the growing electric vehicle and new age automotive sectors in India. This fund-of-funds structure allows you to invest in a diversified portfolio of ETFs, offering exposure to innovative companies driving the future of transportation. It's ideal for those seeking long-term growth in a rapidly evolving market.
- Focus on electric vehicles and new age automotive sectors
- Diversified portfolio through ETF investments
- Ideal for long-term growth seekers
- Aligns with India's push for sustainable transportation
- Managed by ICICI Prudential, a trusted financial institution
Investment Thesis
ICICI Pru Nifty EV & New Age Automotive ETF FOF offers a compelling investment opportunity with strong backing from the ICICI Group, a reputable promoter. The growing digital services sector and the shift towards electric vehicles present significant growth potential. Additionally, its attractive valuation compared to peers makes it a prudent choice for investors seeking exposure to the future of mobility.
- Strong credibility backed by the ICICI Group, ensuring trust and stability.
- Significant growth runway in digital services and electric vehicle sectors.
- Attractive valuation compared to industry peers, enhancing investment appeal.
- Diversified exposure to new-age automotive trends and innovations.
- Potential for long-term capital appreciation as EV adoption accelerates.
Opportunity vs Risk
- Growing EV market in India
- Government incentives for EV adoption
- Diversification in new age sectors
- Increasing consumer demand for sustainability
- High competition in EV sector
- Regulatory changes affecting subsidies
- Market volatility impacting returns
- Dependence on technology advancements
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10BusinessHighThe sector is future-ready with a clear model focusing on electric vehicles and new-age automotive technologies.
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10GrowthHighConsistent revenue and profit growth observed in the underlying sectors.
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10ProfitabilityHighROE and ROCE are competitive, but OCF is slightly lower than net profit.
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10ValuationHighValuation metrics like P/E and P/B are in line with peers, suggesting fair pricing.
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8BalanceHighDebt levels are manageable, with adequate reserves and liquidity.
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7GovernanceHighPromoter holding is stable with minimal pledging and good disclosure practices.
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8DriversHighStrong growth drivers in EV adoption, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.