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How is DSP BlackRock Natural Resources and New Energy Fund?

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DSP BlackRock Natural Resources and New Energy Fund scheme invests in equity and equity related securities of companies domiciled in India and some portion of companies domiciled abroad.

 The scheme is ranked number 1 in thematic-infrastructure category by Crisil. It has given a return of 21.95% since its launch.

 The following are the investment details of the fund:

Turnover- 59%

NAV- Rs.35.91

Expense: 2.32%

Minimum investment- Rs.1000

Minimum SIP investment- Rs.500

Exit load- 1% for redemption within 364 days

 The only con of investing in this open-ended equity fund is that it has a high expense ratio. However, the pros outweigh the con to some extent.

Pros include:

-      Higher risk adjusted returns when compared to category

-      Lower risk compared to benchmark

-      1Y, 3Y and 5Y returns are higher than the benchmark

Pijush Kanti Biswas

DSP BlackRock Natural Resources and New Energy Fund is a sector fund which has consistently outperformed its benchmark since its inception.

A sector fund is a mutual fund which invests in stocks of companies that operate in a particular industry or sector of the economy like Banking funds, Pharma funds, FMCG funds, etc.

Key points for L&T Infrastructure Fund is:

·      This fund has been rated as a 5-star fund by Groww and Ranked 1 by CRISIL in Thematic-infrastructure category.

·      AUM of close to ₹435 Cr. The AUM is less that is also one advantage of the portfolio.

·      Launched in 25 April, 2008. So, performance can be ease to judge.

·      Past 3 years return is 26.53% per annum

·      Has consistently outperformed its benchmark BSE S&P 100 and NIFTY 50 since its launch.

·      The top portfolio holdings of the fund include Reliance Industries Limited, HPCL, ONGC, Coal India, IOCL, BPCL, GAIL, CCIL etc.

·      The holdings are balanced across various sectors with maximum weightage given to energy sector (61.3%).

If you are looking to investing in sector fund, DSP BlackRock Natural Resources and New Energy Fund is among the best sector fund available in market and with the make in India initiative by Indian Government, this sector bound to grow in future.

Happy Investing!

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