Best Renewable Energy Mutual Funds in India 2026: Top 10 & Guide
What Renewable Energy mutual funds are, who should invest, key risks, and the top 10 funds with returns and risk data.
Renewable energy mutual funds are thematic equity funds that invest in companies producing, distributing or supplying clean energy such as solar, wind and hydro. They suit long-term investors with high risk tolerance. This guide covers who should invest, benefits, risks, and the top 10 energy-themed funds from our data.
Key takeaways
- Renewable energy funds are typically equity funds classed as thematic funds.
- They invest in companies working in solar, hydro, wind and other renewable sources.
- They suit long-term investors with high risk appetite, including those focused on sustainability and ESG.
- Policy changes, young-sector volatility, technology shifts and high valuations are key risks.
- The top 10 funds below are matched by name (energy and power themes) and ranked by an internal score.
What are renewable energy mutual funds?
Renewable energy mutual funds are typically equity funds that pool investors' money and invest in shares of renewable energy companies. They are categorised as thematic funds because they focus on one theme. They give exposure to businesses in solar, hydro, wind and other renewable sources, including companies that generate, distribute or supply renewable energy.
Who should invest in renewable energy mutual funds?
- Investors with a long-term horizon.
- Investors with a high risk appetite, since these funds are equity-oriented.
- Investors who want to capitalise on the shift from traditional to green energy.
- Investors who want to focus on environment, sustainability and governance (ESG).
- Investors who want investments that match their values.
Advantages of renewable energy mutual funds
- Sustainability focus: investing helps support companies with a positive environmental and social impact.
- Diversification within the sector across several renewable energy companies.
- Shifting trends: governments are moving from traditional to renewable energy sources, and the fund can capture that growth.
- Low-carbon regulations: as countries tighten carbon rules, green energy companies may fare better over the long term than traditional energy companies.
Risks of renewable energy mutual funds
- Policy and regulation: a pullback in incentives or regulatory changes can hurt the sector.
- Sector maturity: many renewable companies are young, which can bring higher volatility and operational and financial risk.
- Technology risk: newer technologies can make existing ones obsolete.
- Market risk: as equity funds, they are affected by market trends, economic conditions and geopolitics, and valuations can be high.
How are Renewable Energy mutual funds taxed?
Gains from Renewable Energy funds are subject to capital gains tax as equity mutual funds. The rates and holding-period rules depend on the fund type and can change, so check the current rules or speak to a tax advisor before you invest.
Top 10 Renewable Energy mutual funds ranked by an internal score
These are the top 10 Renewable Energy funds from our data, ranked by Invo Wealth's internal fund-quality score. The score itself is not shown, only the return and risk numbers behind it. These funds are matched by theme from their names rather than from an official SEBI sub-category. A "--" means the fund has not completed that period or the data is unavailable. Some entries are different plan or option variants of the same scheme (for example Direct vs Regular, or Growth vs Bonus), so their figures can look similar.
Returns across 6 months to 5 years
Performance data as of 5 September 2026.
| Fund | 6M CAGR | 1Y CAGR | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|
| Nippon India Power & Infra Fund - Regular Plan - Bonus Option | 22.79% | 12.66% | 18.60% | 20.42% |
| Nippon India Power & Infra Fund - Regular Plan - Growth Option | 22.79% | 12.66% | 18.60% | 20.42% |
| DSP Natural Resources And New Energy Fund | 2.39% | 20.51% | 18.71% | 15.44% |
| ICICI Prudential Strategic Metal and Energy Equity Fund of Fund | 32.69% | 70.34% | 35.50% | -- |
| Tata Resources & Energy Fund | 13.98% | 9.64% | 14.24% | 11.37% |
| Groww BSE Power ETF FOF | 18.84% | 15.35% | -- | -- |
| ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND | 18.02% | 16.75% | -- | -- |
| DSP Global Clean Energy Overseas Equity Omni FoF | 14.48% | 32.74% | 17.47% | 11.40% |
| Kotak Energy Opportunities Fund | 7.85% | 6.53% | -- | -- |
| Baroda BNP Paribas Energy Opportunities Fund | -3.82% | 3.77% | -- | -- |
Risk and consistency metrics
| Fund | ISIN | Volatility | Max drawdown (3Y) | Sortino ratio |
|---|---|---|---|---|
| Nippon India Power & Infra Fund - Regular Plan - Bonus Option | INF204K01AD2 | 21.45% | -25.83% | 0.73 |
| Nippon India Power & Infra Fund - Regular Plan - Growth Option | INF204K01AE0 | 21.45% | -25.83% | 0.73 |
| DSP Natural Resources And New Energy Fund | INF740K01060 | 21.60% | -22.14% | 0.73 |
| ICICI Prudential Strategic Metal and Energy Equity Fund of Fund | INF109KC1Z22 | 28.50% | -14.71% | 1.44 |
| Tata Resources & Energy Fund | INF277K012B6 | 21.69% | -20.64% | 0.44 |
| Groww BSE Power ETF FOF | INF666M01LQ7 | 23.68% | -15.58% | 0.51 |
| ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND | INF109KC15W9 | 17.27% | -19.18% | 0.78 |
| DSP Global Clean Energy Overseas Equity Omni FoF | INF740K01284 | 24.59% | -24.94% | 0.63 |
| Kotak Energy Opportunities Fund | INF174KA1WA6 | 16.65% | -9.91% | -0.04 |
| Baroda BNP Paribas Energy Opportunities Fund | INF251K01UG4 | 16.72% | -8.22% | -0.27 |
The list is matched by name using energy and power themes, so it can include broader energy funds, not only renewable ones. Check each fund's strategy.
How to invest in Renewable Energy mutual funds
You can invest in these funds using the Invo Wealth app. Sign up, get complete portfolio insights and start investing in mutual funds that actually suit you.
Conclusion
Renewable energy funds offer a long-horizon bet on the shift to green power, with the volatility and policy risk of a young sector. Keep exposure measured.
Frequently asked questions
What is a renewable energy mutual fund?
It is an equity-oriented thematic fund that invests in companies that generate, supply or distribute green energy such as solar, wind or hydro.
Why invest in a renewable energy fund?
Countries worldwide are shifting from traditional to renewable energy, and these funds give exposure to a range of such companies, which suits investors with values-based or ESG goals.
Are renewable energy funds safe?
No. Being equity-focused they can be volatile, and performance depends on the sector and broader market conditions.
What is the ideal horizon for renewable energy funds?
A long-term horizon, since the sector is still developing and returns could be cyclical.
How can I invest in renewable energy mutual funds?
You can invest through a SIP or a lump sum. To invest in these funds, you can use the Invo Wealth app: sign up, get portfolio insights and start investing.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. This article is for education only and is not investment advice. Past performance does not guarantee future returns. Invo Wealth is an AMFI-registered mutual fund distributor (ARN-368528).