The electric vehicle (EV) revolution in India is shifting gears in 2025. Backed by government policies, rising fuel costs, and increasing environmental awareness, the EV market is expanding faster than ever. As investors look for sustainable and high-growth opportunities, mutual funds focusing on EV-centric companies have emerged as smart investment vehicles.
In this post, we’ll explore 5 mutual funds that are actively investing in EV stocks in 2025, their performance, and why they might be your gateway to the EV boom. Whether you’re a beginner or a seasoned investor, this blog will help you make informed decisions.
Why EVs Are a Game-Changer for Mutual Fund Investors
Before diving into the list, it’s essential to understand why mutual funds are betting big on EV stocks:
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Strong Government Push: India’s FAME II scheme, PLI for EV batteries, and state-level subsidies are accelerating EV adoption.
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Global Shift to Green Energy: ESG (Environmental, Social, and Governance) investing is becoming mainstream.
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Rising Demand & Market Size: The Indian EV market is expected to grow at a CAGR of over 45% between 2024 and 2030.
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Diverse Opportunities: From battery makers to charging infrastructure, software for EV management to component suppliers, the ecosystem is wide and growing.
Top 5 Mutual Funds Charging Up on EV Stocks in 2025
1. ICICI Prudential Technology Fund
Why it’s EV-relevant:
Though primarily a tech fund, it has started diversifying into EV software, IoT, and AI-based mobility solutions.
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Key Holdings: Tata Elxsi, KPIT Technologies, Bosch
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EV Exposure: Software and smart mobility
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2025 YTD Returns: ~21% (as of May 2025)
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Expert Tip: Ideal for tech-savvy investors wanting to ride the EV + AI wave.
Real-Time Example:
Tata Elxsi’s autonomous vehicle solutions are gaining international clients, and ICICI Pru Tech Fund has increased its stake by 8% in Q1 2025.
2. SBI Multicap Fund
Why it’s EV-relevant:
This fund spreads risk across large, mid, and small-cap stocks with a recent focus on green and clean energy sectors.
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Key Holdings: Tata Motors, Exide Industries, Amara Raja Energy
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EV Exposure: Direct EV manufacturing and battery suppliers
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2025 YTD Returns: ~17%
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Trust Factor: Managed by India’s most trusted PSU bank-backed AMC
Real-Time Example:
SBI Multicap Fund increased its allocation in Tata Motors by 2.3% post its record-breaking Q4 EV sales.
3. Nippon India Small Cap Fund
Why it’s EV-relevant:
It focuses on emerging players in the EV component and battery ecosystem.
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Key Holdings: Sona BLW Precision, Greaves Cotton, Himadri Speciality
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EV Exposure: Auto components, motor tech, lithium cell raw materials
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2025 YTD Returns: ~23%
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Authoritativeness: One of India’s top-performing small-cap funds over the last 5 years
Real-Time Example:
Greaves Cotton’s EV subsidiary, Greaves Electric Mobility, hit the 1 million EVs milestone, prompting Nippon to hike its exposure.
4. Axis ESG Equity Fund
Why it’s EV-relevant:
It invests in companies with high ESG scores, many of which are leaders in clean energy and EV initiatives.
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Key Holdings: Mahindra & Mahindra, NTPC, Tata Power
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EV Exposure: Renewable energy, EV charging infra
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2025 YTD Returns: ~19%
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Trustworthiness: ESG-certified, transparency-focused fund
Real-Time Example:
Tata Power’s EV charging network crossed 100,000 stations, and Axis ESG has steadily increased its stake since January 2025.
5. HDFC Infrastructure Fund
Why it’s EV-relevant:
The fund focuses on infrastructure-related sectors, including EV charging networks, power grids, and highways.
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Key Holdings: ABB India, Adani Energy, Power Grid Corp
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EV Exposure: Charging infrastructure and green grids
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2025 YTD Returns: ~15%
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Experience: HDFC Mutual Fund is known for long-term infrastructure plays
Real-Time Example:
ABB India received a ₹1,200 crore EV charger supply order in March 2025, and the fund quickly rebalanced to capture this growth.
Key Benefits of Investing in These Funds
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Diversified Exposure: Instead of betting on one stock, you gain access to a broad EV ecosystem.
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Professional Management: Skilled fund managers track industry trends and make informed decisions.
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Liquidity & Flexibility: Easy entry and exit via SIPs or lump sum investments.
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Long-Term Growth: With EV adoption only going upwards, these funds offer strong future potential.
How to Start Investing
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Choose a fund that aligns with your risk appetite and investment horizon.
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Use platforms like Groww, Zerodha Coin, Paytm Money, or AMC websites.
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Prefer SIPs for rupee cost averaging and discipline.
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Track fund performance quarterly to rebalance when necessary.
Final Thoughts
The electric vehicle revolution in India is real, and it’s picking up speed in 2025. By investing in mutual funds focused on EV stocks, you not only tap into a high-growth sector but also align with global sustainability goals.
Whether you prefer large-cap stability or small-cap growth, there’s a mutual fund charging up just right for you.
Stay charged, stay invested.
Note: Investors are advised to consult financial advisors before making investment decisions.
