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Top Green Energy Mutual Funds - Best Funds, Benefits & Risks

As of FY 2025–26 (April to September 2025), India added nearly 28 GW of non-fossil fuel capacity, compared to about 5.1 GW from fossil fuels. This shows a clear acceleration in the country’s shift toward clean and renewable energy sources such as solar, wind, and hydro power. To capture this shift, several sectoral funds like green energy mutual funds invest in companies that generate, supply, or support renewable power.

Top Green Energy Mutual Funds in 2025

Green Energy Mutual Funds Screener

Here's the list of Top Green Energy Mutual Funds in India (2025).

Created by

@82600328260032

Showing 1 - 7 of 7 results

last updated at 8:00 AM IST 
NameMFs (7)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓NAVNAV↓↓Absolute Returns - 3MAbsolute Ret. - 3M↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓↓CAGR 3YCAGR 3Y↓↓Expense RatioExpense Ratio↓↓Exit LoadExit Load↓↓VolatilityVolatility↓
1.ICICI Pru Energy Opportunities Fund
ICICI Pru Energy Opportunities Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
10,268.79
10,268.79
10.56
10.56
4.35
4.35
6.56
6.56
-
-
0.53
0.53
1.00
1.00
14.73
14.73
2.SBI Energy Opportunities Fund
SBI Energy Opportunities Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
9,722.28
9,722.28
10.70
10.70
2.28
2.28
-0.11
-0.11
-
-
0.79
0.79
1.00
1.00
17.19
17.19
3.Nippon India Power & Infra Fund
Nippon India Power & Infra Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
7,529.71
7,529.71
374.44
374.44
1.01
1.01
-4.25
-4.25
25.09
25.09
0.95
0.95
1.00
1.00
17.10
17.10
4.DSP Natural Res & New Energy Fund
DSP Natural Res & New Energy Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
1,474.17
1,474.17
106.52
106.52
5.44
5.44
6.30
6.30
19.70
19.70
0.87
0.87
-
-
17.88
17.88
5.Tata Resources & Energy Fund
Tata Resources & Energy Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
1,232.15
1,232.15
52.79
52.79
-0.73
-0.73
2.54
2.54
16.76
16.76
0.53
0.53
0.25
0.25
16.20
16.20
6.Baroda BNP Paribas Energy Opportunities Fund
Baroda BNP Paribas Energy Opportunities Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
747.34
747.34
11.52
11.52
1.74
1.74
-
-
-
-
0.70
0.70
1.00
1.00
13.10
13.10
7.Kotak Energy Opportunities Fund
Kotak Energy Opportunities Fund
Sectoral Fund - Energy & Power
Sectoral Fund - Energy & Power
Growth
Growth
241.84
241.84
10.22
10.22
0.76
0.76
-
-
-
-
0.92
0.92
0.50
0.50
8.89
8.89
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Disclaimer: Please note that the above table is for informational 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.

Selection criteria: Plan: Growth | Category: Equity | Sub-category: Sectoral Fund - Energy & Power | AUM: Sorted from Highest to Lowest

What are Green Energy Mutual Funds?

Green Energy mutual funds in India are equity mutual funds that invest in companies that work in renewable energy. These include businesses that make or supply solar panels, wind turbines, hydro equipment, or other clean power solutions. These funds focus on the renewable energy sector instead of spreading money across all industries. They aim to benefit from India’s growing shift to clean energy.

Overview of the Green Energy Mutual Funds in India

ICICI Pru Energy Opportunities Fund

ICICI Prudential Energy Opportunities Fund invests in companies across the energy value chain, from oil and gas to renewable and power utilities. It aims to capture growth in both traditional and emerging energy segments.

SBI Energy Opportunities Fund

This SBI’s energy fund focuses on businesses involved in energy production, distribution, and new-age energy solutions. It looks for long-term opportunities as India transitions to cleaner power sources.

Nippon India Power & Infra Fund

Nippon India Power & Infra Fund invests in companies working in the power, infrastructure, and related sectors. It focuses on firms that benefit from India’s growing energy demand and infrastructure development.

DSP Natural Res & New Energy Fund

DSP Natural Resources & New Energy Fund combines investments in natural resource companies, such as mining and metals, with those developing renewable and clean-energy technologies. It offers exposure to both conventional and new-age energy themes.

Tata Resources & Energy Fund

This Tata fund invests mainly in resource-based and energy-driven businesses across large, mid-sized, and small companies. It seeks to benefit from India’s rising industrial and power needs.

How to Invest in Green Energy Mutual Funds?

Here’s how you can identify and invest in top green energy mutual funds with Tickertape Mutual Fund Screener -

  1. Launch Tickertape Mutual Fund Screener.
  2. Under the Category search for “Sectoral Fund - Energy & Power”.
  3. Sort out the top energy mutual funds based on over 50 fundamental and technical filters.
  4. After identifying the green energy mutual fund that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in Green Energy Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation of Green Energy Mutual Funds

Most green energy mutual funds in India are equity-oriented because they mainly invest in listed renewable energy and related companies. So, they follow the same tax rules as equity mutual funds. You can take a look at the details below:

Capital Gains Type Holding Period Tax Rate
Short-Term Capital Gains (STCG) Less than 12 months 20%
Long-Term Capital Gains (LTCG) More than 12 months 12.5%

Types of Energy Mutual Funds

Traditional Energy Sector Mutual Funds

These funds invest in companies involved in oil, gas, and other conventional energy production. Their performance often depends on global demand and prices for fossil fuels.

Green Energy and Renewable Energy Mutual Funds

These thematic funds focus on companies that produce energy from sustainable sources such as solar, wind, and hydro. Some funds specialise in specific areas, for example, solar energy funds or wind energy funds in India, giving investors focused exposure to the renewable energy space.

Benefits of Investing in Green Energy Mutual Funds

Exposure to High-Growth Renewable Segments

Within the non-fossil mix, solar contributes 127.33 GW and wind 53.12 GW. Green energy mutual funds invest in such fast-expanding areas, giving investors exposure to sectors with long-term growth potential.

Backed by Strong National Progress

India’s power capacity crossed 500 GW in September 2025, with over 51% coming from non-fossil sources. This shows steady national progress toward cleaner energy, creating a favourable environment for funds focused on renewables.

Diversification within Energy

These funds don’t rely on just one energy type and offer exposure to both conventional energy companies and emerging renewable sectors. They include solar, wind, hydro, and new technologies like hydrogen and battery storage, offering broader exposure within the energy theme.

Government and Policy Support

The government has achieved its COP26 goal of 50% of installed capacity from non-fossil sources five years early. This policy push encourages more investments and innovations in renewable energy, indirectly benefiting these funds.

Risks of Investing in Green Energy Mutual Funds

Sector Concentration Risk

These funds invest mainly in renewable and energy-related companies. If the sector underperforms or faces policy setbacks, the fund’s returns can be affected more than diversified equity funds.

Policy and Regulatory Risk

The renewable sector depends heavily on government incentives and policies. Any change in subsidy schemes, taxes, or import duties can impact company profits and fund performance.

Market Volatility

Energy and infrastructure stocks are often sensitive to global commodity prices, interest rates, and investor sentiment. Short-term fluctuations can lead to high volatility.

Technology and Execution Risk

Renewable energy involves new and evolving technologies. If projects face cost overruns, delays, or technological inefficiencies, it can affect company earnings and, in turn, the fund’s value.

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Factors to Consider Before Investing in Green Energy Mutual Funds

Fund Objective

Each green energy mutual fund has a specific goal; some focus on renewable power generation, while others include broader energy or infrastructure themes. It’s important to understand the fund’s objective and see if it matches your own investment purpose, whether that’s long-term growth or sectoral exposure.

Regulatory and Policy Risks

The renewable energy sector depends on government policies, subsidies, and international climate commitments. Any major policy change can affect project costs, profitability, and the overall performance of these funds. Staying informed about such developments helps manage expectations and risks.

Risk Profile

Like any investment, the top renewable energy mutual funds carry some risk. Investors should carefully review the fund’s risk profile and assess whether it aligns with their investment goals and risk tolerance.

Market Trends and Demand

The green energy sector is still relatively new and evolving. Keeping an eye on the market trends and demand for renewable energy and energy-efficient technologies can help assess the long-term potential of their investments.

Conclusion

Green energy mutual funds let investors take part in India’s growing shift toward clean and renewable power. The sector has strong government support and good long-term growth potential. However, these funds carry risks such as price swings, limited diversification, and policy changes. That’s why investors should understand these risks, check if the fund matches their investment thesis, and make decisions carefully before investing. Tools like the Tickertape Mutual Fund Screener help investors analyse funds easily. It offers over 50+ ready-to-use filters to compare fund performance, expenses, and holdings, making it easier to choose wisely.

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Frequently Asked Questions About Green Energy Mutual Funds

  1. What are green energy mutual Funds?

    Green Energy Mutual Funds invest in companies that work in renewable energy areas such as solar, wind, hydro, and other clean power sources. These funds aim to benefit from India’s shift toward sustainable and low-carbon energy.

  2. What are the best green energy mutual funds?

    Here are the top green energy mutual funds based on their 1Y absolute returns:

    1. ICICI Pru Energy Opportunities Fund
    2. DSP Natural Res & New Energy Fund
    3. Tata Resources & Energy Fund
    4. Nippon India Power & Infra Fund
    5. SBI Energy Opportunities Fund

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  3. How can you invest in green energy mutual funds?

    Here’s how you can start investing in green energy mutual funds:

    1. Launch the Tickertape Mutual Fund Screener.
    2. Select the Green Energy Mutual Fund that matches your investment goals and risk appetite.
    3. Click on “Place Order” and choose the “SIP” option. Enter your preferred SIP amount and confirm “OK”.

    Your order will be placed.

  4. How do green energy mutual funds differ from traditional energy mutual funds?

    Green energy funds invest in renewables like solar and wind, while traditional energy funds focus on fossil fuels like oil and gas. Green funds align more with ESG practices.

  5. Who should invest in green energy mutual funds?

    Investors who prioritise sustainability and long-term growth may find green energy mutual funds appealing. Disclaimer: However, investors need to understand the risks associated with these funds, do thorough research and consult a financial advisor before investing.

  6. What’s the difference between thematic energy mutual funds and green energy mutual funds?

    Thematic energy mutual funds invest broadly in companies across the entire energy sector, including traditional and renewable energy sources. Green energy mutual funds for growth, however, focus specifically on companies involved in environmentally sustainable energy, such as solar, wind, and other renewable sources. Disclaimer: Please note that this is not a recommendation. Please do your own research or check the SID of the specific fund to know more about what they invest in.

  7. What are the potential risks of investing in green energy mutual funds?

    Risks include market volatility, reliance on government policies, and rapid technological changes that can affect fund performance.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.