Should I invest in DSP BlackRock Natural Resources and New Energy Fund

DSP BlackRock Natural Resources and New Energy Fund is a thematic fund and has good past performance track record. Please check here https://www.advisorkhoj.com/mutual-funds...

While the returns of this fund can be very tempting (41% in the last one year), you must know that being a thematic fund it is suitable only for those investors who have very high risk taking ability. Thematic funds can even outperform the broader market by a big margin when market conditions are favourable for the theme in which the funds has invested; at the same time, these funds can also under-perform considerably when the market conditions are not favouring the theme but broader markets are doing good.

Therefore, if you are ready to take very high risk in anticipation of very high returns, then you may invest in this fund. Else, you may invest in DSP BlackRock Opportunities Fund which is a diversified equity fund or DSP BlackRock small and midcap fund which is a small and midcap fund with a 5 years view.

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