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Top 5 Mutual Funds to Benefit from EV Battery Stocks

The EV (Electric Vehicle) industry is on the rise. It is now being looked upon as the newest sunrise Industry. A few decades ago, it was being helmed by a futuristic technology that has proven to be nascent in every way possible as of now. Further on, having support from Government Policies has further added to its reputation as an environmental savior and economic booster. 

 

While Investing directly in EV Battery Stocks can be a bit tricky considering the fluctuating nature of the market, it is probably a good choice for investors to look at Mutual funds with a connection to EV Battery Stocks as a viable investing option. Here are 5 Mutual Funds that have the potential to soar higher with the rise of the EV industry revolution.

Bandhan Transportation and Logistics Fund

It is a thematic fund with the holdings of certain top-tier players in the Automobile Industry. Tata Motors Pvt. Ltd. has a major holding of 8.8% in this mutual fund with maximum exposure, while another Automobile giant, Hero Motocorp Pvt. Ltd., has a significant holding of 5.25%. This scheme was launched in October 2022, and BTLF invested primarily in stocks of companies that are a part of the transportation and logistics sectors in India. As of July 2023, almost 9 months after its inception, the fund held 44.96% of its allocation in large caps, 20.20% in mid-caps, and 26.37% in small caps.

ICICI Pru Transportation and Logistics Fund

ICICI Pru Mutual Fund plows its capital into a concentrated portfolio of equity and equity-related instruments of companies that are a part of the transportation and logistics sector specifically. Scheme currently acquires an AUM (Assets Under Management) of Rs 2531.18 crore. According to data extracted from July 2023, the fund has a 53.13% allocation to large-cap stocks, 11.17% allocation to mid-cap stocks, and 12.84% allocation to small-cap stocks. The highest Exposure of the company is in Tata Motors Ltd., with a holding of 5.76%.

HDFC Defence Fund

Unlike ICICI and Bandhan, HDFC Fund has invested its capital in a concentrated equity and equity-related portfolio of defense and allied sector companies. This Scheme is new in the market, and its long-term run is yet to be analyzed; therefore, investors are advised to exercise discretion before investing in this mutual fund.

HDFC fund has the highest exposure to Bharat Electronics Ltd. at around 17.09 % and the second highest exposure is to Bharat Forge Ltd. with just 1.16 %

Mahindra Manulife Consumption Fund

With an aim to invest in companies that are likely to gain an advantage from consumption-led demand in India, the MMCF scheme has market cap investment with a major allocation to large-cap of 63.42 %. It was launched in November 2018, and it is classified as a sectoral fund. As of July 2023, with a major allocation of 12.07% to EV stocks, it is a favorable option for investors.

Kotak Focused Equity Fund

It is one of the best options for long-term investment. Launched in 2019, its long-term performance has proved fruitful for investors as of now. It is classified as a focused fund with an investment in the market cap of 30 companies and currently holds an AUM of Rs 2759.81 crore.

Radhe

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