If you want to make money from auto and real estate sector, you have the chance till 28th November.

New Delhi. India’s real estate and auto sector is currently on the rise and if you also want to make money from these two sectors, then there is a good chance till 28th November. Nippon India Mutual Fund has announced the launch of two new funds in the passive space. These new fund offers (NFOs) are based on auto and realty themes. Both the funds are open-ended index funds, whose NFO opens on November 14, 2024 and will close on November 28.

Nippon India Nifty Auto Index Fund is a passive fund that will track the performance of the Nifty Auto index, while Nippon India Nifty Realty Index Fund will track the Nifty Realty index. Since both of these are passive funds, they will invest in the securities of their respective underlying indexes. Being passive, these funds have some benefits for investors, such as low costs, diversification through a single unit and transparency as both the funds will mimic their respective indexes.

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Fast growing auto sector
India’s automobile sector contributes 7.1% to the country’s gross domestic product (GDP). The industry is diverse, including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and automotive component manufacturers. Demand for electric vehicles (EVs) is increasing, driven by government incentives, falling battery costs and rising petrol and diesel prices.

EV will get more speed
EV penetration in India is expected to reach 40% by FY 2030, leading to growth of the auto sector. Nifty Auto Index TRI has given a CAGR of 48.7% in the last one year, while Nifty 50 TRI has given a CAGR of 48.7% till October 31, 2024. Has given returns of 28.3% CAGR. Nifty Auto TRI has outperformed Nifty 50 TRI in 3 and 5 year periods.

Real estate most preferred
The country’s real estate market is projected to grow at a CAGR of 13.8% between 2017 to 2047, representing a whopping growth of 48 times in 30 years. The Indian real estate industry is the second largest generator of employment, contributing 18% to total employment. Nifty Realty Index TRI has returned 66% CAGR in the last one year, which is 2.3 times more than Nifty 50 TRI in the same period. It has also outperformed Nifty 50 on the basis of CAGR in the period of 3, 5 and 10 years till October 31.

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