As global commodity cycles, energy transitions, and infrastructure demand continue to shape market opportunities, sectoral mutual funds focused on metals, mining, and natural resources are gaining investor attention in 2026.
These funds offer targeted exposure to industries that often benefit from economic expansion, industrial growth, and rising commodity prices.
In this editorial, we will examine three commodity and metal-focused mutual funds by analysing their investment strategies, portfolio composition, sector allocation, historical performance, to help investors decide whether to add them to their watchlist or not.
#1 DSP Natural Resources & New Energy Fund
The DSP Natural Resources & New Energy Fund is an equity mutual fund that follows a thematic investment approach.
It primarily invests in companies engaged in the discovery, development, production, and distribution of natural resources, such as energy and mining.
Additionally, the fund focuses on alternative energy and energy technology sectors, including renewable energy, automotive developments, energy storage, and power generation.
The fund’s portfolio is managed with a focus on specific risk and return metrics. As of 31 March 2026, the fund’s Total Net Assets (AUM) stood at Rs 20,437.02 million (m).
The fund carries an expense ratio of 1.96% and currently does not have an exit load for investments held longer than zero months.
How Does the Fund Invest?
The portfolio is positioned toward large-cap and giant-cap stocks, which together make up over 80% of the equity allocation. It maintains a significant cash position of 18.99%, with the rest invested in stocks.
The fund is concentrated in sensitive and cyclical sectors, with a focus on energy and basic materials.
Sector Allocation
| Energy | 50.13% |
| Basic Materials | 39.55% |
| Utilities | 7.21% |
| Industrials | 1.76% |
| Technology | 1.20% |
| Consumer Cyclical | 0.15% |
Source: Funds Factsheet
The fund’s top 10 holdings account for 59.92% of the total portfolio. The portfolio consists of 23 equity holdings in total.
Top Stock Holdings
Source: Funds Factsheet
How has the Fund been Performed Over Time?
This table illustrates the growth of a hypothetical Rs 10,000 investment in the fund compared to its primary benchmark (35% BSE Oil & Gas Index + 30% BSE Metal Index + 35% MSCI World Energy Index).
Rs 10,000 Investment Growth Comparison
| Period | Fund CAGR (%) | Fund Final Value (Rs) | Benchmark CAGR (%) | Benchmark Final Value (Rs) |
| 1 Year | 33.03% | Rs13,303 | 44.29% | Rs14,429 |
| 3 Years | 23.96% | Rs19,081 | 26.26% | Rs20,165 |
| 5 Years | 18.51% | Rs23,385 | 24.30% | Rs29,696 |
| Since Inception | 14.32% | Rs1,11,574 | 10.09% | Rs56,586 |
Source: Funds Factsheet
Over one year, the fund generated 33.03%, underperforming the benchmark return of 44.29%. Over three years, the fund delivered 23.96%, slightly below the benchmark return of 26.26%. Over a five-year horizon, the fund returned 18.51%, also trailing the benchmark return of 24.30%.
If an investor had invested Rs 10,000 five years ago, it would have grown to approximately Rs 23,385, compared to Rs 29,696 in the benchmark.
However, since inception, the fund has shown strong long-term wealth creation, turning Rs 10,000 into approximately Rs 111,574, significantly outperforming the benchmark value of Rs 56,586.
This reflects the fund’s ability to create substantial value for long-term investors despite periods of shorter-term benchmark underperformance.
#2 ICICI Pru Commodities Fund
The ICICI Prudential Commodities Fund is an open-ended equity scheme that primarily invests in companies engaged in commodity and commodity-related sectors.
As of 30 April 2026, the fund’s Monthly Average Assets Under Management (AAUM) stood at Rs 36.68 bn, with a closing AUM of Rs 37.89 bn.
The fund exhibits an average dividend yield of 1.26. In terms of risk and return metrics, the fund has an annualised standard deviation (volatility) of 16.83%, a Sharpe Ratio of 0.86, and a Beta of 0.89. Its portfolio turnover ratio is relatively low at 0.25 times for equity.
How Does the Fund Invest?
Fund’s portfolio is diversified across large, mid, and small-cap companies, suggesting a flexible approach to market capitalisation within its chosen theme.
Sector Allocation
| Sector | Percentage Allocation (%) |
| Metals & Mining | 44.67% |
| Chemicals | 25.53% |
| Construction Materials | 8.46% |
| Capital Goods | 7.11% |
| Oil, Gas & Consumable Fuels | 3.95% |
Source: Funds Factsheet
The fund’s equity holdings are concentrated in major industrial and commodity players.
The top five stock holdings are:
Top Stock Holdings
| Company | Portfolio Weight |
| Jindal Steel Ltd. | 8.37% |
| JSW Steel Ltd. | 7.29% |
| Jindal Stainless Ltd. | 5.62% |
| Hindalco Industries Ltd. | 5.14% |
| UPL Ltd. | 5.06% |
Source: Funds Factsheet
The total equity shares account for 97.73% of the Net Asset Value (NAV), with an additional 7.92% allocated to foreign equities – Freeport-McMoRan Inc and Southern Copper Corp, etc.
How has the Fund been Performed Over Time?
The fund is benchmarked against the Nifty Commodities TRI.
Below is the growth of a hypothetical investment of Rs 10,000 over various periods:
Rs 10,000 Investment Growth Comparison
| Period | Scheme CAGR (%) | Scheme Value (Rs) | Benchmark CAGR (%) | Benchmark Value (Rs) |
| 1 Year | 22.53% | 12,252.53 | 21.47% | 12,147.21 |
| 3 Years | 20.02% | 17,312.78 | 22.05% | 18,211.96 |
| 5 Years | 18.68% | 23,556.44 | 18.28% | 23,157.23 |
| Since Inception | 26.74% | 47,160.00 | 20.45% | 33,804.85 |
Source: Funds Factsheet
Over one year, the scheme delivered 22.53%, slightly outperforming the benchmark’s 21.47%.
A Rs10,000 investment five years ago would have grown to Rs23,556, showcasing consistent long-term performance and strong wealth creation since inception with superior benchmark outperformance.
#3 SBI Comma Fund
The SBI Comma Fund (previously known as SBI Magnum COMMA Fund) is an open-ended equity scheme designed to generate growth and consistent returns by investing predominantly in a portfolio of stocks from companies engaged in commodity and commodity-related sectors.
As of 31 March 2026, the fund manages Assets Under Management (AUM) of Rs 9.38 bn, with an average AUM (AAUM) for the month of Rs 9.60 bn.
The fund’s risk profile is measured through several quantitative data points: it has a Standard Deviation of 15.78%, a Beta of 0.85, and a Sharpe Ratio of 0.73.
How Does the Fund Invest?
The fund follows a thematic investment approach, focusing specifically on the commodities cycle.
Its portfolio is positioned across different market capitalisations, with a primary focus on Large Cap stocks (46.51%), followed by an allocation to Mid Cap (24.17%), and Small Cap (23.38%) companies.
Sector Allocation
| Sector / Industry | Allocation (%) |
| Metals & Mining | 27.06% |
| Oil, Gas & Consumable Fuels | 26.90% |
| Power | 11.93% |
| Construction Materials | 10.29% |
| Chemicals | 7.37% |
Source: Funds Factsheet
The portfolio is led by major players in the steel and energy sectors. The Equity Turnover ratio is 0.13, while the Total Portfolio Turnover ratio is 0.14.
Top Stock Holdings
| Stock Name | Portfolio Weightage (%) |
| Tata Steel Ltd | 8.74% |
| Oil & Natural Gas Corporation Ltd (ONGC) | 7.67% |
| Reliance Industries Ltd | 5.19% |
| CESC Ltd | 5.07% |
| Oil India Ltd | 3.98% |
Source: Funds Factsheet
How has the Fund been Performed Over Time?
Over one year, the scheme delivered 21.88%, slightly outperforming the benchmark’s 21.47%.
Rs 10,000 Investment Growth Comparison
| Period | Scheme CAGR (%) | Benchmark CAGR (%) | Scheme Value (Rs) | Benchmark Value (Rs) |
| 1 Year | 21.88% | 21.47% | Rs12,188 | Rs12,147 |
| 3 Years | 21.50% | 22.05% | Rs17,964 | Rs18,212 |
| 5 Years | 14.54% | 18.28% | Rs19,720 | Rs23,157 |
Source: Funds Factsheet
And Over three years, it generated 21.50%, marginally below the benchmark return of 22.05%. Over five years, the scheme returned 14.54%, underperforming the benchmark’s 18.28%.
A Rs 10,000 investment five years ago would have grown to Rs 19,720, compared to Rs 23,157 in the benchmark, reflecting relatively weaker long-term performance.
Which is the Best Metal and Commodity Mutual Fund for 2026?
Commodity and metal-focused mutual funds can offer significant return potential during favourable commodity upcycles, infrastructure expansion, and industrial growth phases.
Among the funds discussed, each offers unique strengths based on portfolio composition, sector focus, and historical performance.
However, these funds also carry higher volatility due to their concentrated exposure to cyclical industries like metals, mining, and energy.
Therefore, investors should carefully evaluate their risk appetite, investment horizon, and overall portfolio strategy.
Happy investing.
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