The DSP Natural Resources and New Energy Fund is a thematic equity mutual fund managed by DSP Mutual Fund. It focuses on investing in companies operating within the natural resources and energy sectors, including traditional energy, mining, and emerging renewable energy industries.
Fund Overview
- Fund Type: Open-ended equity scheme
- Category: Sectoral/Thematic – Energy
- Launch Date: March 3, 2008
- Fund Manager: Rohit Singhania
- Benchmark: Composite of S&P BSE Oil & Gas Index (35%), S&P BSE Metal Index (30%), and MSCI World Energy 30% Buffer 10/40 Net Total Return Index (35%)
- Risk Level: Very High
- Minimum Investment: ₹500 (SIP) / ₹1,000 (Lump Sum)
- Exit Load: 1% if redeemed within 12 months
Fund Managers of DSP Natural Resources and New Energy Fund
The DSP Natural Resources and New Energy Fund is managed by Rohit Singhania, who has been at the helm since July 1, 2012. He brings over 24 years of experience in equity research and fund management.
About Rohit Singhania
- Educational Background: Mr. Singhania holds a Bachelor of Commerce (B.Com.) degree and a Master of Management Studies (MMS) in Finance.
Professional Experience:
- He joined DSP Investment Managers in September 2005 as a Portfolio Analyst in the firm’s Portfolio Management Services (PMS) division.
- In June 2009, he transitioned to the Institutional Equities Team within the same organization.
- Prior to his tenure at DSP, he worked at HDFC Securities Limited as a Senior Equity Analyst in their Institutional Equities Research Desk.
Funds Managed:
- Natural Resources and New Energy Fund (since July 2012)
- Equity Opportunities Fund (since June 2015)
- ELSS Tax Saver Fund (since July 2015)
- Dynamic Asset Allocation Fund (since November 2023)
Under his management, the DSP Natural Resources and New Energy Fund focuses on investing in companies involved in commodities, energy, and renewable energy sectors, with up to 35% allocation to global stocks for diversification.
DSP Natural resources and New energy Fund NAV
As of May 28, 2025, the Net Asset Values (NAVs) for the DSP Natural Resources and New Energy Fund are as follows:
NAV Details
| Plan Type | NAV (₹) | Change (%) | Source |
|---|---|---|---|
| Regular Plan – Growth | ₹88.37 | -0.12% | Economic Times |
| Direct Plan – Growth | ₹98.15 | -0.12% | Groww |
DSP Natural Resources and New Energy Fund Review
The DSP Natural Resources and New Energy Fund is a thematic equity mutual fund that invests primarily in companies within the natural resources and energy sectors, including traditional energy, mining, and emerging renewable energy industries.
As of May 2025, the fund has experienced a negative return over the past year, reflecting the inherent volatility of sector-specific investments. However, over longer durations, the fund has demonstrated positive performance.
Key Features
- Fund Type: Open-ended equity scheme
- Category: Sectoral/Thematic – Energy
- Launch Date: March 3, 2008
- Fund Manager: Rohit Singhania
- Benchmark: Composite of S&P BSE Oil & Gas Index (35%), S&P BSE Metal Index (30%), and Net Total Return Index (35%)
- Assets Under Management (AUM): ₹1,227.15 crore (as of April 30, 2025)
- Expense Ratio: 2.11% for Regular Plan; 1.00% for Direct Plan
- Exit Load: None
- Minimum Investment: ₹100 (lump sum and SIP)
Pros:
- Strong Long-Term Performance: The fund has delivered impressive returns over the 3- and 5-year periods, outperforming its benchmark.
- Global Diversification: Exposure to international energy and natural resources companies provides diversification benefits.
- No Exit Load: Investors can redeem their investments without any exit load charges.
Cons:
- High Volatility: Being a sectoral/thematic fund, it is subject to higher volatility compared to diversified equity funds.
- Underperformance in Short Term: The fund has experienced negative returns over the past year, highlighting the risks associated with sector-specific investments.
- Higher Expense Ratio for Regular Plan: The expense ratio for the Regular Plan is relatively high at 2.11%.
DSP Natural Resources and New Energy Fund Portfolio
As of February 28, 2025, the DSP Natural Resources and New Energy Fund has a diversified portfolio focusing on sectors like metals, mining, and energy. Here’s a detailed overview:
Top 10 Holdings
| Company | Sector | % of Assets |
|---|---|---|
| Hindalco Industries Ltd. | Aluminium | 9.25% |
| Coal India Ltd. | Coal | 8.32% |
| Jindal Steel & Power Ltd. | Iron & Steel Products | 8.13% |
| Oil & Natural Gas Corporation Ltd. | Oil Exploration & Production | 5.71% |
| NMDC Ltd. | Industrial Minerals | 5.64% |
| National Aluminium Co. Ltd. | Aluminium | 5.08% |
| Tata Steel Ltd. | Iron & Steel Products | 4.88% |
| Bharat Petroleum Corporation Ltd. | Refineries & Marketing | 4.68% |
| Hindustan Petroleum Corporation Ltd. | Refineries & Marketing | 4.62% |
| GAIL (India) Ltd. | Gas Transmission/Marketing | 4.17% |
Global Exposure
The fund also invests in international energy sectors through:
- BlackRock Global Funds – World Energy Fund: 6.37%
- BlackRock Global Funds – Sustainable Energy Fund: 5.99%
Sector Allocation
| Sector | Allocation (%) |
|---|---|
| Non-Ferrous Metals | 16.23% |
| Petroleum Products | 13.12% |
| Ferrous Metals | 13.01% |
| Mutual Funds | 12.36% |
| Gas | 12.21% |
Market Capitalization Breakdown
| Category | Allocation (%) |
|---|---|
| Large Cap | 44.00% |
| Mid Cap | 34.70% |
| Global Funds | 12.80% |
| Small Cap | 8.50% |
DSP Natural Resources and New Energy Fund Returns
As of early 2025, the DSP Natural Resources and New Energy Fund has demonstrated notable performance across various investment horizons. Below is a comprehensive overview of its returns:
| Investment Period | Annualized Returns (CAGR) |
|---|---|
| 1 Year | 32.20% |
| 3 Years | 16.46% |
| 5 Years | 22.52% |
| 7 Years | 13.44% |
| 10 Years | 16.54% |
| Since Inception | 13.92% |
SIP (Systematic Investment Plan) Returns
| Investment Duration | Total Investment (₹) | Current Value (₹) | Absolute Returns | Annualized Returns |
|---|---|---|---|---|
| 1 Year | 12,000 | 11,058.98 | -7.84% | -14.25% |
| 2 Years | 24,000 | 26,304.20 | 9.60% | 9.09% |
| 3 Years | 36,000 | 44,384.61 | 23.29% | 14.08% |
| 5 Years | 60,000 | 97,250.70 | 62.08% | 19.40% |
| 10 Years | 1,20,000 | 2,85,891.47 | 138.24% | 16.55% |
DSP Natural Resources and New Energy Fund Direct Growth
As of the latest available data, the DSP Natural Resources and New Energy Fund – Direct Plan – Growth exhibits the following key details:
Performance Summary
| Time Period | Fund Returns | Benchmark Returns |
|---|---|---|
| 1 Year | 8.17% | 14.30% |
| 3 Years | 15.64% | 12.55% |
| 5 Years | 34.92% | 40.41% |
| Since Inception | 17.26% | 14.04% |
Investment Objective
The fund aims to generate long-term capital appreciation by investing in equity and equity-related securities of companies engaged in natural resources and energy sectors, including alternative and renewable energy. It also allocates a portion to global funds like BlackRock Global Funds – World Energy Fund and Sustainable Energy Fund.
DSP Natural Resources and New Energy Fund Regular Growth
As of March 13, 2025, the DSP Natural Resources and New Energy Fund – Regular Plan – Growth presents the following key details:
Performance Summary
| Time Period | Fund Returns | Category Average | Rank within Category |
|---|---|---|---|
| 1 Year | 4.14% | 5.35% | 98/174 |
| 3 Years | 12.98% | 15.64% | 84/128 |
| 5 Years | 28.84% | 22.21% | 13/106 |
| 10 Years | 16.32% | 12.05% | 3/77 |
| Since Inception | 13.19% | 7.43% | 103/224 |
Investment Objective
The fund aims to generate long-term capital appreciation by investing in equity and equity-related securities of companies engaged in natural resources and energy sectors, including alternative and renewable energy. It also allocates a portion to global funds like BlackRock Global Funds – World Energy Fund and Sustainable Energy Fund.
Strengths of DSP Natural Resources and New Energy Fund
Strong Long-Term Performance
- The fund has delivered solid returns over the long term, particularly over 5 and 10-year horizons. It has benefited from upcycles in commodities and energy sectors.
Experienced Fund Manager
- Rohit Singhania has been managing the fund since 2012 and is known for his expertise in resource-based and cyclical sectors.
Diversified Resource Exposure
- While it is a thematic fund, it invests across multiple industries within the natural resources and energy space, including metals, mining, traditional energy, and renewable energy.
Global Exposure
- The fund includes investments in global funds like the BlackRock World Energy Fund, offering international diversification and access to global opportunities.
Focused on Long-Term Growth Themes
- It taps into structural themes such as rising demand for infrastructure, renewable energy adoption, and the global energy transition, which could drive growth over the long term.
Risks of DSP Natural Resources and New Energy Fund
High Volatility
- Sectoral funds, especially those tied to commodities, can experience sharp ups and downs based on economic conditions, geopolitical developments, and commodity price swings.
Concentration Risk
- A large portion of the portfolio is concentrated in sectors like metals and energy, making it vulnerable to sector-specific downturns.
Currency and Global Risks
- Since the fund invests partly in global equities, it is exposed to currency risk, international regulatory changes, and global economic trends.
Thematic Limitation
- Because it’s a thematic fund, it lacks the diversification of multi-sector equity funds. If the natural resources or energy sector underperforms, the fund is likely to follow suit.
Environmental and Regulatory Risk
- Increasing environmental regulations and ESG (Environmental, Social, and Governance) considerations may negatively affect companies in traditional energy and mining sectors.
This fund is best suited for investors who are willing to accept higher risk in exchange for potentially higher returns and are comfortable with sector-specific exposure over a long investment horizon. Let me know if you’d like help comparing it with other funds or understanding how it could fit into your portfolio.
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