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Top Renewable Energy Sector Mutual Funds in 2024
Table of Contents
- Top Renewable Sector Mutual Funds in 2024
- 1). Tata Resources & Energy Fund Regular-Growth
- 2). DSP Natural Resources and New Energy Fund Regular
- 3). SBI Energy Opportunities Fund Regular-Growth
- 4). ICICI Prudential Energy Opportunities Fund Regular
- 5). Nippon India Power & Infra Fund-Growth
- Conclusion:
Top Renewable Sector Mutual Funds in 2024
India is leaping towards renewable energy with a strong mindset and achieving goals. The Indian government has put more and more effort into switching to Renewable India. Further to achieve this goal, the Indian Government in its interim Budget restated Rs.15000 to Rs.18000 yearly Solar electricity could benefit households if excess is given to distribution companies. The budget in the same has been increased to Rs.4,555 crore from Rs.2,167 crore which is one step towards the fulfillment of renewable energy goals.
Now let's see some top Renewable Sector Mutual Funds in 2024 that are getting benefits from the Government’s development in this sector and then you can decide how to take advantage of it.
1). Tata Resources & Energy Fund Regular-Growth
Objective- The Scheme aims to achieve long-term capital appreciation by allocating a minimum of 80% of its net assets to equities or equity-related instruments of Indian companies operating in the resources and energy sectors.
Fund House- Tata Mutual Fund
|
Launch Date |
Dec 28, 2015 |
|
Expense Ratio |
2.25% |
|
Exit Load |
0.25% if redeemed within 30 days |
|
AUM |
Rs.716.53 Cr (as of 30 Jun 2024) |
|
Benchmark |
NIFTY Commodities Total Return Index |
|
Min. Investment |
Rs.5000. |
|
Risk |
Very High |
|
Returns Since Launch |
18.99% |
Top 3 Stock Holdings-
|
Company |
Sector |
Asset (%) |
|
NTPC |
Energy |
6.69 |
|
Reliance Industries |
Energy |
5.92 |
|
Vedanta |
Metals & Mining |
4.29 |
2). DSP Natural Resources and New Energy Fund Regular
Objective- The Scheme will make investments in Indian-domiciled companies' equities and equity-related instruments, as well as a percentage of foreign-domiciled companies whose primary economic activity is (a) the discovery, development, production, or distribution of natural resources, such as energy, mining, etc.
Fund House- DSP Mutual Fund
|
Launch Date |
Apr 25, 2008 |
|
Expense Ratio |
2.1% |
|
Exit Load |
NA |
|
AUM |
Rs.1213.71 Cr (as of 30 Jun 2024) |
|
Benchmark |
MSCI World Energy 10/40 Net Total Return Index |
|
Min. Investment |
Rs.100. |
|
Risk |
Very High |
|
Returns Since Launch |
14.55% |
Top 3 Stock Holdings-
|
Company |
Sector |
Asset (%) |
|
Coal India |
Materials |
8.99 |
|
Black Rock Global Funds - World Energy Fund |
Financial |
8.01 |
|
Hindalco Industries |
Metals & Mining |
7.79 |
3). SBI Energy Opportunities Fund Regular-Growth
Objective- The scheme aims to give investors opportunities for long-term capital appreciation by investing in equity and equity-related instruments of companies involved in operations like exploration, production, distribution, transportation, and processing of traditional and new energy, including but not limited to sectors like oil and gas, utilities, and power.
Fund House- SBI Mutual Fund
|
Launch Date |
Feb 26, 2024 |
|
Expense Ratio |
1.73% |
|
Exit Load |
1%, if redeemed within 1 year |
|
AUM |
Rs.10894.33 Cr (as of 31 Jul 2024) |
|
Benchmark |
Nifty Energy Total Return Index |
|
Min. Investment |
Rs.5000. |
|
Risk |
Very High |
|
Returns Since Launch |
13.54% |
Top 3 Stock Holdings
|
Company |
Sector |
Asset (%) |
|
Reliance Industries |
Energy |
26.2 |
|
NTPC |
Energy |
6.97 |
|
Bharat Petroleum Corporation |
Energy |
6.36 |
4). ICICI Prudential Energy Opportunities Fund Regular
Objective- The scheme aims to offer investors long-term capital appreciation opportunities through investments in equity and equity-related instruments of companies involved in traditional and new energy exploration, production, distribution, transportation, and processing, including but not limited to industries/sectors like oil and gas, utilities, and power.
Fund House- ICICI Prudential Mutual Fund
|
Launch Date |
Jul 22, 2024 |
|
Expense Ratio |
1.73% |
|
Exit Load |
1%, if redeemed within 3 months |
|
AUM |
Rs.8531.7 Cr (as of 31 Jul 2024) |
|
Benchmark |
Nifty Energy Total Return Index |
|
Min. Investment |
Rs.5000. |
|
Risk |
Very High |
|
Returns Since Launch |
0.7% |
Top 3 Stock Holdings-
|
Company |
Sector |
Asset (%) |
|
Reliance Industries |
Energy |
10.96 |
|
HDFC Bank |
Financial |
5.27 |
|
Power Grid Corporation of India Energy |
Energy |
5.22 |
5). Nippon India Power & Infra Fund-Growth
Objective- The scheme aims to invest in equity and equity-related instruments of companies operating in or associated with India's infrastructure and power sectors to generate long-term capital appreciation.
Fund House- Nippon India Mutual Fund
|
Launch Date |
May 08, 2004 |
|
Expense Ratio |
1.84% |
|
Exit Load |
1%, if redeemed within 1 month |
|
AUM |
Rs.7537.49 Cr (as of 31 Jul 2024) |
|
Benchmark |
Nifty Infrastructure Total Return Index |
|
Min. Investment |
Rs.5000. |
|
Risk |
Very High |
|
Returns Since Launch |
19.41% |
Top 3 Stock Holdings-
|
Company |
Sector |
Asset (%) |
|
Larsen & Toubro |
Construction |
8.35 |
|
Reliance Industries |
Energy |
7.19 |
|
NTPC |
Energy |
6.35 |
Conclusion:
The Government is serious about renewable use of Energy and Green transmission in India. Various companies have started allocating their assets in energy portfolios. Investors who want to make investments in Energy themes/sectors have a huge opportunity to look for the same after carefully examining the offerings, risk levels, and time horizons.
Disclaimer: This Blog is for information purposes only and doesn’t advise any reader to make any type of investment. Always consult your Financial Consultant before investing.
Frequently Asked Questions
Renewable sector mutual funds invest primarily in companies involved in renewable energy sources like solar, wind, and other green technologies. These funds aim to benefit from the global shift towards sustainable energy.
Investing in renewable sector mutual funds in 2024 allows you to capitalize on the growing focus on green energy, supported by government initiatives and global trends toward sustainability.
Renewable sector mutual funds can be highly volatile due to the emerging nature of the sector. Market fluctuations, government policies, and technological advancements can impact performance, making them suitable for investors with a high-risk tolerance.
Some top renewable sector mutual funds in 2024 include Tata Resources & Energy Fund, DSP Natural Resources and New Energy Fund, and SBI Energy Opportunities Fund, among others.
To choose the right fund, consider factors like the fund’s past performance, expense ratio, risk level, and the specific companies it invests in. Align these with your investment goals and risk tolerance before making a decision.
