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.
Investors planning long-term wealth creation through index funds can also explore SIP planning strategies and estimate future returns using a SIP Calculator before investing in NFOs or mutual funds.
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.
