Pulse Alternative
Mutual Funds

Top 3 Renewable Energy Mutual Funds That Delivered Up to 25.74% Returns in Just 1 Year


Synopsis: This article highlights the renewable energy mutual funds that have delivered up to 25.74% returns in a year’s time, which have become highly popular among investors due to India’s efforts towards green energy. 

Investments in renewable energy and natural resources have become one of the hottest trends within the mutual fund domain. As India moves faster towards renewable energy and the world moves towards adopting sustainable forms of energy, investments in such segments have become quite popular. Investors get to invest in companies that deal with conventional energy as well as renewables.

What Are Renewable Energy Mutual Funds?

Renewable energy mutual funds are thematic equity funds that invest in companies within the energy and natural resources sector. These funds allow investors to gain exposure to businesses involved in solar, wind, hydrogen, power generation, and other renewable energy sources. 

DSP Natural Resources and New Energy Fund 

    • NAV: ₹124.03
    • AUM: ₹2,342.60 Cr
    • Expense Ratio: 0.83%
    • Exit Load: NIL
    • Performance Snapshot
    • Category Comparison (1-Year)
      • Fund 1-Year returns: 25.74%
      • Equity thematic Category Average: 6.5%
      • Outperformance: +19.24 percentage points

    ICICI Prudential Energy Opportunities Fund 

      • NAV: ₹11.65
      • AUM: ₹8,851.29 Cr
      • Expense Ratio: 1.87%
      • Exit Load: 1% (within 3 months) 
      • Performance Snapshot
      • Category Comparison (1-Year)
        • Fund 1-Year returns: 15.12%
        • Equity thematic Category Average: 6.5%
        • Outperformance: +8.62 percentage points

      Tata Resources & Energy Fund 

        • NAV: ₹57.61
        • AUM: ₹1,343.33 Cr
        • Expense Ratio: 0.70%
        • Exit Load: 0.25% (within 30 days)
        • Performance Snapshot
        • Category Comparison (1-Year)
          • Fund 1-Year returns: 10.80%
          • Equity thematic Category Average: 6.5%
          • Outperformance: +4.3 percentage points

        Also read: Top 5 Multi-Asset Allocation Funds That Generated Up to 25.82% Returns in Just 1 Year

        Performance Comparison of Renewable Energy Mutual Funds

        Note: NAV, AUM, expense ratio, and other fund details are sourced from Groww as of May 19, 2026. 

        Why These Renewable Energy Funds Are Gaining Popularity

        • India is rapidly adding renewable energy capacity through solar, wind and green hydrogen projects
        • Government policies like Make in India, Atmanirbhar Bharat and PLI schemes are supporting the industry
        • Related companies are gaining from strong global demand for metals and energy resources
        • Recently many funds have had strong returns of 10-25%, attracting investor interest
        • Thematic investing is gaining traction as investors look for opportunities in high-growth sectors.

        Risks to Consider

        • These funds can be very volatile, and the short-term returns can be varied.
        • Performance is dependent on unreliable commodity prices such as oil, gas and metals
        • They invest in only a handful of sectors so diversification is lower than regular equity funds
        • Global energy regulations and government policies can have a strong impact on performance
        • Entering can lead to lower or negative returns in the short term after a strong rally.

        Investor takeaway

        Funds investing in renewable energy and natural resources have huge potential to grow in the long term. However, they are extremely cyclical and volatile. Such investments are suitable only for those who have a long-term investment perspective and a higher level of risk tolerance. 

        Written by Ameet S

        Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.

        • Trade Brains Money’s editorial team is a dedicated group of researchers, finance writers, and editors with over 10 years of experience, committed to delivering clear, accurate, and actionable insights across banking, credit cards, loans, real estate, personal finance, and taxation to help you make informed financial decisions.



Source link

Related posts

Best Performing Mutual Funds of the Last 10 Years

George

‘Global investing is no longer optional for Indians’

George

Motilal Oswal Mutual Fund Reduces Stake in HealthCare Global Enterprises via Market Transactions – scanx.trade

George

Leave a Comment