Why DSPBR Natural Res & New Energy Fund was a top performer in the past year?

The DSPBR Natural Res & New Energy Fund stands as a top performer in one year period by clocking gains no other fund could deliver.The fund delivered a whopping 49.85 per cent returns over past one year,  thus far outperforming several of the equity diversified funds.

The fund category has managed to deliver 22.49 per cent returns,  which suggests impressive outperformance by DSPBR Natural Res & New Energy Fund.

The fund's objective is to generate capital appreciation and provide long term growth opportunities by investing in companies involved in (a) discovery, development, production, or distribution of natural resources, viz., energy, mining etc; (b) alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage and enabling energy technologies.

The Scheme will also invest a certain portion of its corpus in the equity and equity related securities of companies domiciled overseas, which are principally engaged in the discovery, development, production or distribution of natural resources and alternative energy and/or the units/shares of Merrill Lynch International Investment Funds – New Energy Fund, Merrill Lynch International Investment Funds – World Energy Fund and similar other overseas mutual fund schemes.

The fund size is 89 crores and major holdings for the fund are Hindalco Industries, Tata Steel, Vedanta Limited, GSPL, NMDC, ONGC, Mahanagar Gas Limited, HPCL, BPCL, Nalco and the likes.

These very set of stocks have done exceedingly well in the past one year and hence the fund has managed to outperform the markets over a one year period.