Electric Vehicles

The Electric Vehicles Portfolio holds US-listed companies across the EV supply chain: vehicle manufacturers, battery and lithium producers, and the semiconductor and component suppliers that make electric vehicles work. It includes both established manufacturers and newer EV-focused companies. The point is to hold the chain rather than to pick which manufacturer wins, since suppliers often earn regardless of which brand sells. Vested’s research team sets the mix. You can see the full list of holdings and their weights once you sign up.

This portfolio may suit you if you believe the shift to electric transport continues over the next decade and you would rather own the supply chain than a single carmaker. It needs a long horizon and a tolerance for sharp falls, which this sector has already been through more than once. It is less suitable for short-term money. If you also hold the Clean Energy Portfolio, check the overlap, because some companies appear in both.

Yes. Resident Indians can invest in the Electric Vehicles Portfolio through Vested under the RBI’s Liberalised Remittance Scheme (LRS), which currently allows you to remit up to USD 250,000 per financial year for overseas investments. You open a US investment account through Vested, complete a one-time KYC, and transfer money from your Indian bank account. The shares and ETFs are held in your own account in your name, not pooled in a fund, and you can sell and bring the money back to India whenever you want. Gains are taxable in India depending on how long you hold, so factor that into your planning.

Vested reviews every Managed Portfolio, including Electric Vehicles, once a quarter. A review does not automatically lead to a rebalance. The portfolio is only changed if the research team concludes that the existing allocation no longer makes sense, for example when a company no longer fits the theme or when the weights have drifted away from what was intended. Managed Portfolios are non-discretionary, which means nothing is bought or sold in your account on its own. You are notified when a change is recommended and you decide whether to approve it. There are no brokerage or transaction charges on rebalancing trades.

Because picking EV stocks yourself usually means betting on one manufacturer, when the component and battery suppliers may be the steadier way to hold the theme. A Managed Portfolio does that groundwork for you: Vested’s research team decides which companies go in, how much weight each one gets, and when something should change. You still own the actual shares and ETFs in your own US account, so you can see exactly what you hold, and this is not a fund unit. It also helps with a problem most people run into on their own, which is quietly ending up with far too much money in one stock. You pay an annual advisory fee on the amount you invest, with no purchase fee, no brokerage on rebalancing trades and no exit load. None of this stops you buying individual US stocks on Vested as well, if you want to do both.

This has been a volatile sector, and vehicle demand has grown unevenly by market. Price competition among manufacturers has cut margins, and several EV-focused companies are not consistently profitable. Government subsidies and emission rules have supported demand in many countries, and those can be reduced. Battery materials such as lithium have had sharp price swings in both directions. Charging infrastructure and consumer willingness to switch still vary widely by country. Vested tags this portfolio as high risk. Because the holdings are priced in US dollars, your returns in rupees also depend on how the rupee moves against the dollar over the period you stay invested.

There are five steps. First, sign up on Vested and complete your KYC, a one-time process to open your US investment account. Second, add money by remitting from your Indian bank account under the LRS route. Third, open the Electric Vehicles Portfolio and read through its holdings, risk tag and fee before you commit. Fourth, invest the amount you want. You can start small and add to it over time, and there is no lock-in. Fifth, review it periodically and approve or decline any rebalancing recommendation you are sent. You can withdraw at any time without an exit load.

The carmakers are only part of it. Battery manufacturers and the companies that mine and process lithium and other battery materials sell into every brand. Semiconductor and power electronics firms supply the chips that manage batteries, charging and motors, and their content per vehicle is higher in an EV than in a petrol car. Component suppliers handle thermal management, wiring and drivetrains. Charging network operators and the utilities and grid equipment makers behind them benefit as more vehicles plug in. This is why the portfolio holds the supply chain rather than betting on which manufacturer wins. Suppliers often earn regardless of the badge on the car.