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

New Delhi. India’s real estate and auto sectors are booming right now and if you too want to make money from these two sectors then November 28 is a good opportunity. 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 closes on November 28.

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

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

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

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

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