Top 5 mutual funds with power sector exposure; delivered gains of up to 64 per cent!
Power, as a cornerstone of infrastructure, plays a pivotal role in the economic growth and prosperity of nations
In the words of Francis Bacon, the eminent lord chancellor of Great Britain and master of the English language, "Knowledge itself is power." While Bacon's wisdom holds timeless significance, we find a contemporary echo of his sentiment in the realm of investing. If knowledge is power, then in the world of investment, power stocks are the linchpin to unlocking the next big theme for portfolio empowerment.
Power, as a cornerstone of infrastructure, plays a pivotal role in the economic growth and prosperity of nations. In India, the power sector stands as a diverse tapestry, incorporating conventional sources like coal, natural gas, and hydro, alongside burgeoning non-conventional sources such as wind and solar power. The nation's commitment to providing universal access to affordable and sustainable power underscores the fundamental principle driving India's power industry.
The dynamic landscape of India's power sector is witnessing a thrilling metamorphosis, fueled by escalating demand, ambitious renewable energy targets, and proactive government initiatives. From the towering might of coal-fired plants to the blossoming brilliance of solar farms, this sector is not just lighting up homes; it's illuminating the path to a sustainable future.
Powering Portfolios: Mutual Funds Lighting the Way
For investors looking to harness the potential of India's energy evolution, mutual funds offer a strategic entry point. Let's dive into the top five mutual funds with a focus on power and allied sectors.
- ICICI Pru PSU Equity Fund- NAV Rs 16.62
|
Stock Name
|
Holding Weight %
|
3M Change in %
|
|
NTPC
|
9.89
|
-0.11
|
|
Power Grid Corporation
|
8.41
|
0.27
|
|
NHPC
|
4.54
|
0.63
|
|
Indian Renewable Energy Development Agency
|
1.88
|
1.88
|
|
Total
|
24.72
|
|
Holding as per November, 2023
Asset under management is Rs 1,625 crore and one year return is 58.36 per cent.
- Invesco India Infrastructure Fund – NAV Rs 58.38
|
Stock Name
|
Holding Weight %
|
3M Change in %
|
|
Power Grid Corporation
|
5.96
|
-0.03
|
|
Tata Power Company
|
3.97
|
-0.19
|
|
KEI Industries
|
2.95
|
-0.23
|
|
Suzlon Energy
|
2.91
|
0.26
|
|
Thermax
|
2.69
|
0.07
|
|
REC
|
2.23
|
2.23
|
|
NHPC
|
1.63
|
-0.09
|
|
Triveni Turbine
|
1.19
|
-0.05
|
|
ABB
|
0.91
|
-0.12
|
|
Total
|
24.44
|
|
Holding as per November, 2023
Asset under management is Rs 687 crore and one-year return is 54.90 per cent.
- Templeton India Equity Income Fund – NAV Rs 124.24
|
Stock Name
|
Holding Weight %
|
3M Change in %
|
|
NTPC
|
5.82
|
0.47
|
|
Power Grid Corporation
|
4.66
|
0.28
|
|
NHPC
|
4.47
|
-0.02
|
|
CESC
|
1.14
|
0.08
|
|
Total
|
16.09
|
|
Holding as per November, 2023
Asset under management is Rs 1,705 crore and one-year return is 34.99 per cent.
- Aditya Birla SL PSU Equity Fund- NAV Rs 29.92
|
Stock Name
|
Holding Weight %
|
3M Change in %
|
|
NTPC
|
8.15
|
-0.62
|
|
Power Grid Corporation
|
4.23
|
-0.63
|
|
IREDA
|
3.88
|
2.88
|
|
NLC India
|
1.91
|
0.26
|
|
Power Finance Corporation
|
1.23
|
0.13
|
|
Total
|
19.4
|
|
Holding as per November, 2023
Asset under management is Rs 1,488 crore and one-year return is 63.77 per cent.
- Nippon India Power & Infra Fund- NAV Rs 296.25
|
Stock Name
|
Holding Weight %
|
3M Change in %
|
|
NTPC
|
6.29
|
-1.35
|
|
NLC India
|
2.63
|
-0.04
|
|
Power Grid Corporation
|
2.47
|
-0.17
|
|
Tata Power Company
|
2.4
|
0.48
|
|
Sterling and Wilson Renewable Energy
|
2.25
|
-0.85
|
|
IREDA
|
2.23
|
2.23
|
|
Total
|
18.27
|
|
Holding as per December, 2023
Asset under management is Rs 3,035 crore and one-year return is 60.83 per cent.
The Energy Odyssey: Investing in India's Power and Energy Future
India, being the third-largest producer and consumer of electricity globally, with an installed power capacity of 423.25 GW as of July 31, 2023, stands as a beacon in the energy landscape. Moreover, it's the only G20 nation on track to meet the Paris Agreement targets.
As the Indian power and energy sector undergoes a riveting transformation, investors can ride the wave of demand growth, changing energy mix, and market dynamics. The mutual funds highlighted above serve as gateways for those who want to be active participants in this transformative journey. After all, in the world of investing, knowledge of power is indeed the key to illuminating a prosperous future.