Renewable Energy Mutual Funds in 2025
India achieved a record 29.52 GW of renewable capacity in FY 2024-25, pushing total installed renewables to 220.10 GW by March 31, 2025. This growing shift toward clean energy creates opportunities that renewable energy mutual funds capture by investing in companies across solar, wind, and other sustainable technologies.
Renewable Energy Mutual Funds
These are some of the best renewable energy mutual funds based on their past performance.
| Name | AUM | CAGR 3Y | Expense Ratio | Alpha | Volatility | NAV | Exit Load | CAGR 5Y |
|---|---|---|---|---|---|---|---|---|
| ICICI Pru Energy Opportunities Fund | 10122.71 | - | 0.53 | 9.72 | 15.3 | 10.05 | 1 | - |
| SBI Energy Opportunities Fund | 9411.8 | - | 0.86 | 9.52 | 18.57 | 10.4 | 1 | - |
| Nippon India Power & Infra Fund | 7376.91 | 27.36 | 0.95 | 3.61 | 18.59 | 370.49 | 1 | 31.72 |
| DSP Natural Res & New Energy Fund | 1309.61 | 21.42 | 0.96 | 0 | 19.01 | 100.84 | 0 | 26.31 |
| Tata Resources & Energy Fund | 1184.01 | 18.19 | 0.53 | 6.09 | 17.76 | 52.81 | 0.25 | 24.75 |
| Baroda BNP Paribas Energy Opportunities Fund | 718.62 | - | 0.7 | -1.72 | 14.44 | 11.25 | 1 | - |
Disclaimer: Please note that the above list of the best renewable energy mutual funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data on the list of the best renewable energy mutual funds is from 8th September 2025. This data is derived from the Tickertape Mutual Funds Screener.
- AUM: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of Best Renewable Energy Mutual Funds
ICICI Pru Energy Opportunities Fund
ICICI Pru Energy Opportunities Fund invests in companies across the energy sector, including oil, gas, power, and renewables. It tracks opportunities in India’s evolving energy sector and maintains exposure to businesses in both traditional and emerging energy industries.
SBI Energy Opportunities Fund
SBI Energy Opportunities Fund invests in companies linked to energy production, distribution, and services. Its portfolio includes firms from conventional power, renewable energy, and allied industries. The fund reflects the sector’s growth and diversification and follows developments in India’s changing energy ecosystem.
Nippon India Power & Infra Fund
Nippon India Power & Infra Fund invests in power generation, distribution, and infrastructure companies. It covers sectors like utilities, construction, and energy services. The fund provides exposure to businesses driving India’s energy and infrastructure development and balances investments across related industries within the theme.
DSP Natural Resources & New Energy Fund
DSP Natural Resources & New Energy Fund invests in natural resources and alternative energy businesses. It covers mining, metals, oil, gas, and renewable energy. The fund diversifies its portfolio by combining traditional resource-based companies with emerging clean and sustainable energy firms.
Tata Resources & Energy Fund
Tata Resources & Energy Fund invests in companies from energy, power, oil, gas, and natural resources. It follows a thematic approach, combining resource-driven businesses with evolving energy segments. The fund focuses on multiple industries tied to India’s energy and resource needs.
Baroda BNP Paribas Energy Opportunities Fund
Baroda BNP Paribas Energy Opportunities Fund invests in companies across the energy value chain. Its portfolio includes firms in conventional energy, renewables, and related services. The fund follows opportunities from India’s energy transition and sector expansion, maintaining exposure across diversified energy-related businesses.
What are Renewable Energy Mutual Funds?
Renewable energy mutual funds invest in companies that generate energy from wind, solar, hydro, and other renewable sources. These funds support sustainability efforts and attract investors who want to align their investments with environmental goals.
Taxation of Renewable Energy Mutual Funds
Most clean energy mutual funds in India are equity-oriented, as they primarily invest in listed clean energy and related companies. Their taxation is the same as that of other equity mutual funds. The taxation is as follows:
| Capital Gains Tax | Holding Period | New Rate |
| Short-Term Capital Gains Tax (STCG) | Less than 12 months | 20% |
| Long-Term Capital Gains Tax (LTCG) | More than 12 months | 12.5% |
How to Invest in Renewable Energy Mutual Funds?
You can easily start to invest in the renewable energy mutual funds by following these steps:
- To invest in the best renewable energy mutual funds, you can visit an equity investment platform such as smallcase
- The next step is to research and identify the best renewable energy mutual funds that match your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a SIP plan, and complete the process.
Benefits of Investing in Renewable Energy Mutual Funds
- Diversification: These renewable energy mutual funds may expose investors to both conventional and renewable energy sectors, which may help to mitigate risk.
- Growth Potential: Government policies and technological advances are driving growth in renewable energy, benefiting funds invested in companies like solar and green hydrogen producers.
- Systematic Investment Plans (SIPs): Investors can use SIPs to invest gradually in renewable energy funds, taking advantage of rupee cost averaging.
- Technological Advancements: Some funds offer exposure to new energy technologies, such as green hydrogen, which may lead to breakthroughs in production and storage.
Risks of Investing in Renewable Energy Mutual Funds
- Market Volatility: These funds can be sensitive to market trends and economic changes, which may affect returns.
- Policy Dependence: Changes in government regulations, subsidies, or environmental policies can impact fund performance.
- Competition: Rising demand for sustainable energy increases competition, which could affect profitability.
- Technological Risks: Funds focused on specific technologies depend on continuous progress; delays or setbacks may impact performance.
- Limited Track Record: Some renewable energy funds have shorter histories, making it harder to predict future returns.
- Economic Sensitivity: Global economic changes, such as energy price shifts and supply chain disruptions, can affect fund performance.
Factors to Consider Before Investing in Renewable Energy Mutual Funds
- Risk Profile: Clean energy mutual funds only focus on one sector. Investors should assess their risk tolerance and note that these funds’ performance depends heavily on the demand and growth of the renewable energy industry.
- Performance History: Past performance shows how the fund reacts to market changes and its ability to sustain growth across cycles. Reviewing the past performance data can help investors understand how the fund has performed throughout the market cycles.
- Regulatory and Policy Risks: Clean energy mutual funds are heavily dependent on government policies, regulations, and global prices. Changes in renewable energy policies, subsidies, or fuel pricing may directly affect the fund’s returns.
- Market Trends and Demand: Keeping track of the renewable energy trends, power consumption, policy and technology adoption helps gauge long-term potential. Growing demand for clean energy and infrastructure can shape the performance of sector-focused funds like this.
Conclusion
Investing in renewable energy funds lets you support sustainable practices while aiming for long-term returns. However, it’s essential to carefully research these funds and understand the risks and rewards before investing. Using the Tickertape Mutual Fund Screener can help you with your research and in analysing the top renewable energy funds in India.
Frequently Asked Questions on Renewable Energy Mutual Funds
Renewable energy mutual funds are equity-oriented schemes that invest in companies working in clean energy, including solar, wind, hydro, and related technologies. These funds aim to track growth in India’s expanding renewable energy ecosystem.
As of 8th September 2025, some of the best renewable energy mutual funds sorted based on AUM include:
– ICICI Pru Energy Opportunities Fund
– SBI Energy Opportunities Fund
– Nippon India Power & Infra Fund
– DSP Natural Res & New Energy Fund
– Tata Resources & Energy Fund
– Baroda BNP Paribas Energy Opportunities Fund
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory.
While selecting renewable energy funds, tools like the Tickertape mutual fund screener can help filter options based on factors such as returns, expenses, fund size, and category, making it easier to analyse different schemes.
These funds usually invest in companies involved in solar power, wind energy, electric vehicles, battery storage, and other sustainable technologies. A renewable energy index fund may track a defined benchmark, while active funds diversify across multiple clean energy businesses.
Traditional energy funds often invest in oil, gas, and coal businesses. In contrast, renewable energy sector mutual funds focus on sustainable energy sources like solar and wind, aligning with long-term environmental and policy-driven goals.
Like all equity schemes, mutual funds investing in renewable energy carry market risks, such as policy changes, raw material costs, and technology shifts, which can affect performance. These mutual funds in renewable energy may also face volatility due to global demand fluctuations.
Yes, several clean energy mutual funds track companies involved in renewable energy. Indian investors may also access mutual funds focused on renewable energy abroad through fund-of-funds structures linked to overseas markets.
