DSP Natural Resources and New Energy Fund Regular Growth

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This evolving situation presents attractive investment opportunities, yet at the same time is introducing a greater amount of market risk. This is where the DSP natural resources and new energy fund comes into the picture.

But, for investors who are looking for a specific fund in particular, the next question is not only “Can the fund make a profit?” but also “Can the DSP natural resources and new energy fund regular growth make a profit?” Rather, it is, “Does this theme align with my investment time horizon, risk tolerance and my investment portfolio in general?

Understanding the DSP Natural Resources and New Energy Fund

What Is the DSP Natural Resources and New Energy Fund?

The DSP natural resources and new energy fund is a thematic Equity Fund which seeks to create long term capital appreciation through investing in companies involved in natural resources and alternative energy.

How Does the Fund Approach Natural Resources and New Energy?

The scheme is a combination of two general investment ideas.

The first is the economic sector based on natural resources that has prevailed so far. This encompasses industries like oil and gas, metals, mining and other resource based industries.

The second one is the developing energy ecosystem. This encompasses renewable energy, energy storage, energy technology for the automotive sector and other enabling technologies.

The blend provides the fund exposure towards many established resource businesses and newer energy opportunities.

Key Highlights of the Fund

Fund Category and Investment Style

The fund is a part of the Equity Thematic category and Natural Resources & New Energy. DSP describes it as an open-ended equity scheme that invests its portfolio in the natural resources and alternative energy sectors.

It’s a long-running scheme as it’s been around since April 25, 2008. Its assets under management as of 31st June 2026 were reported to be around ₹2400.8 crore.

The fund can invest between 65% and 100% in Indian stocks and equity-related securities of companies engaged in natural resources and alternative energy. It may invest up to 0% to 35% in overseas related stocks, overseas special funds, and debt and money-market securities are 0% to 20%.

Regular Plan Growth Option

The Regular Plan and the Growth option of the DSP natural resources and new energy fund regular growth.

Typically, returns in a Growth option are invested back into the scheme, instead of periodically distributed as income. This will enable the value of the investment to possibly increase with time dependent on the performance of the markets.

The Regular Plan also includes distribution-related costs via an intermediary that may result in a higher cost ratio than the Direct Plan’s distribution-related costs.

Growth Option Explained Simply

Think of planting a tree and letting its fruits remain on the tree instead of removing them regularly. The fruits can continue to grow over time as they retain their value.

In general, the concept of a Growth option is one that offers a growth path.

No, the returns of mutual funds do not rise in a linear fashion. Markets can go up, down and up, sideways or sideways. Compounding is best when one has sufficient time for an investment and has a chance to ride out market cycles.

DSP Natural Resources and New Energy Fund Regular Growth Features

Minimum Investment

DSP has given investment minimum details as ₹100 for lump sum investment, ₹100 for SIP investment with 12 SIPs and ₹100 for purchase.

The fund is easy to invest in for investors who want to invest a little at a time, due to its low minimum investment.

Ideal Investment Horizon

An ideal holding time for the DSP is 10 years and longer.

This is appropriate on the back of the scheme being thematic.

Resource and energy cycles can take many years to develop. If an investor holds a particular commodity or equity for a short period, the investor may experience only certain phases of the commodity or equity cycle.

Exit Load and Expense Ratio

As of now, DSP does not have any exit load on the fund. As of the end of July 2026, it had an expense ratio of 1.71% for the Regular Plan (excluding expenses of underlying funds) and 2.18% (including expenses of underlying funds).

The reason that expense ratios are important is that they cut into investment returns available to the investors.

DSP Natural Resources and New Energy Fund vs Diversified Equity Funds

The main difference is the amount of concentration.

A diversified equity fund is a fund that typically aims to invest in a variety of asset classes and companies.

There is also a dedicated DSP natural resources and new energy fund that chooses to target a specific theme.

This may result in higher exposure to a given opportunity, but may also lead to higher concentration risk.

It is easy to compare them with a large supermarket that carries an array of different products, and a specialised store, which has a particular industry within it.

The specialised store has the potential to do very well when there is a demand for that type of product. However, its company can be put under increased strain if demand drops.

Regular Plan Growth vs Direct Plan Growth

Both are part of one and the same distribution scheme and have different distribution structures.

Commissions or distribution costs are usually involved in the Regular Plan, and can lead to a higher expense ratio.

In the Direct Plan, the distributor commissions are not similar to those found in the Traditional Plan and usually the expense ratio is smaller.

According to the current data from DSP, it has a lower expense ratio in Direct Growth as opposed to the Regular Growth option.

Therefore, investors who are specifically looking for DSP natural resources and new energy fund regular growth may want to know that investing through a distributor/ intermediary may be suitable and that services are associated with that investment.

Conclusion

The DSP natural resources and new energy fund provides a targeted opportunity to engage in companies related to new and evolving energy technologies, natural resources and mining.

The focus for investors looking into the DSP natural resources and new energy fund regular growth option should be suitability and not just on the past performance of the fund.

FAQs

1. What is the DSP Natural Resources and New Energy Fund?

Ans) The DSP natural resources and new energy fund is an open-ended equity thematic fund, with a focus on natural resources and alternative energy sectors.

2. What is DSP natural resources and new energy fund regular growth?

Ans) It is the Regular Plan Growth option of the scheme in which the investment gains are not paid out periodically, but are kept invested in the fund instead.

3. What is the minimum investment in the DSP Natural Resources and New Energy Fund?

Ans) Currently, DSP quotes a minimum lumpsum investment of ₹100 and a minimum SIP of ₹100 for 12 SIPs.

4. Is the DSP Natural Resources and New Energy Fund risky?

Ans) Yes. Thematic equity investing involves volatility and therefore, is currently classified as Very High Risk by DSP.

5. What is the ideal holding period for the fund?

Ans) At present, the ideal holding period for the scheme (according to DSP) is 10 years or more.