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I am looking to diversify my savings and following the current trends in the automobile industry I am thinking of potentially investing in the electric car industry.

The problem is I am unsure of an effective way to go about doing this. Are there any mutual funds which concentrate on the electric car industry? And if there isn't what would be the next best bet?

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At this time I would say that the electric car industry as a whole is too new to be able to invest in it as a sector. There are only a handful of companies that focus solely on electric cars to create a moderately diverse portfolio, let alone a mutual fund. You can invest in mutual funds that include EV stocks as part of an auto sector or clean energy play, for example, but there's just not enough for an EV-only fund at this point.

At this point, perhaps the best you can do if you want an exclusively EV portfolio is add some exposure to the companies that are the biggest players in the market and review the market periodically to see if any additional investments could be made to improve your diversification. Look at EV-only car makers, battery makers, infrastructure providers, etc. to get a decent balance of stocks.

I would not put any more than 10% of your entire investment portfolio into any one stock, and not more than 20% or so in this sector.

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You could have googled this question. I did so and found a link to this article.

YMMV taking investment advice from thestreet.com is very likely to lose you money. However, there do not seem to be any sector funds that specifically focus on the electric vehicle market.

Along similar, but not exactly the same lines, there are sector funds that focus on renewable energy. This article reviews some of them.

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