Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Direct mutual funds: Why lower fees may not mean higher returns
    • Mutual fund schemes with negative returns surge 3-fold in FY26; only 198 deliver over 10% returns: SEBI annual report
    • New SEBI Nomination Rules From September 1: What changes for demat, mutual fund investors; How to nominate
    • NPS gets a new edge over mutual funds: Why the old ‘pension product’ tag may no longer fit – Money News
    • Bitcoin (BTC) price news: What next after $853 million in weekly ETF inflows?
    • Bitcoin ETFs Draw Nearly $1,000,000 in Weekly Inflows After Cold Storage Breach
    • Thematic Mutual Funds As Core Holdings? 20 Years Of Rolling Return Data Make a Compelling Case
    • 5 amazing ASX ETFs to buy with $500
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Mutual Funds»Should investors bet on metal funds in 2026 amid geopolitical crisis, rising commodity cycles?
    Mutual Funds

    Should investors bet on metal funds in 2026 amid geopolitical crisis, rising commodity cycles?

    May 28, 2026


    Metal and commodity-focused mutual funds are back in focus in 2026 as rising infrastructure spending, global supply constraints, energy transition demand, and industrial recovery continue to support commodity prices worldwide. From steel and aluminium to energy and mining stocks, commodity-linked sectors have seen renewed investor interest amid expectations of a prolonged global commodity upcycle.

    Against this backdrop, investors are increasingly evaluating whether metal and commodity mutual funds can offer attractive return potential over the next few years. According to an Equitymaster analysis, funds focused on metals, mining, energy, and natural resources could benefit from favourable macroeconomic trends, although the category remains highly cyclical and volatile.

    Why choose commodity funds

    Analysts say metal and commodity funds could continue benefiting if global infrastructure spending, industrial demand, and energy-transition investments remain strong. China’s policy measures, global manufacturing recovery, and rising defence and infrastructure spending could further support commodity prices.

    MUST READ: Want gold exposure? These gold funds delivered the best long-term returns over five years

    However, experts caution that commodity funds are inherently cyclical and can witness sharp volatility during economic slowdowns or commodity price corrections. These funds are generally better suited for investors with higher risk appetite and a long-term investment horizon.

    For investors considering the theme, ICICI Prudential Commodities Fund appears relatively balanced because of its diversified exposure, while DSP Natural Resources & New Energy Fund offers an additional clean-energy angle. SBI Comma Fund provides broader commodity-cycle exposure but has shown comparatively weaker long-term consistency.

    Overall, analysts suggest metal funds may work better as tactical or satellite allocations rather than core portfolio holdings in 2026.

    Metal and commodity mutual funds

    Commodity mutual funds invest in companies linked to metals, mining, energy, and natural resources, offering exposure to global commodity cycles and industrial growth trends. These sectoral funds can benefit during rising commodity prices but are generally considered high-risk and cyclical investments.

    MUST READ: How has HDFC Multi-Asset Active FOF performed through different market cycles?

     

    Among the notable performers in the segment are DSP Natural Resources & New Energy Fund, ICICI Prudential Commodities Fund, and SBI Comma Fund, each offering a different approach to commodity investing.

    ICICI Prudential Commodities Fund

    The ICICI Prudential Commodities Fund has emerged as one of the more diversified commodity-oriented schemes in the market. Unlike pure metal-focused funds, it spreads investments across metals & mining, chemicals, construction materials, and capital goods sectors.

    Metals and mining account for nearly 45% of the portfolio, while chemicals contribute over 25%. Major holdings include Jindal Steel, JSW Steel, Hindalco Industries, and Jindal Stainless. The fund also holds limited exposure to international commodity companies.

    The fund delivered 22.53% returns over one year and has consistently maintained strong long-term performance. Since inception, it has generated annualised returns of 26.74%, outperforming its benchmark over the long term. Analysts suggest the diversified approach may help reduce concentration risks often associated with sectoral funds.

    DSP Natural Resources & New Energy Fund

    The DSP Natural Resources & New Energy Fund combines traditional commodity exposure with renewable energy and energy-transition themes. The portfolio is heavily tilted toward energy and basic materials, which together account for nearly 90% of its allocation.

    The fund invests in companies linked to oil & gas, mining, steel, and alternative energy technologies. Key holdings include Tata Steel, Jindal Steel, ONGC, and Oil India, along with exposure to global energy-focused investments.

    The scheme generated returns of 33.03% over one year, although it underperformed its benchmark over shorter-term periods. However, its long-term track record remains strong, with substantial wealth creation since inception. Analysts believe the fund may appeal to investors looking to combine commodity exposure with the global clean-energy transition theme.

    SBI Comma Fund

    The SBI Comma Fund follows a broader commodity-cycle strategy with allocations across metals, oil & gas, power, and construction materials. The fund has exposure across large-cap, mid-cap, and small-cap companies.

    Its top holdings include Tata Steel, ONGC, Reliance Industries, and Oil India. Metals & mining and oil & gas sectors together form more than half of the overall portfolio.

    MUST READ: Reliance executes India Inc’s biggest Samurai loan: Why Japanese investors are betting on RIL

    While the fund has delivered competitive one-year and three-year returns, its longer-term performance has remained relatively weaker compared to its benchmark. Over five years, a Rs 10,000 investment would have grown to around Rs 19,720 versus over Rs 23,000 in the benchmark.

    MUST READ: Can SEBI’s salary-linked SIP plan trigger India’s biggest mutual fund behaviour shift?

    Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Direct mutual funds: Why lower fees may not mean higher returns

    August 10, 2026

    Mutual fund schemes with negative returns surge 3-fold in FY26; only 198 deliver over 10% returns: SEBI annual report

    August 9, 2026

    New SEBI Nomination Rules From September 1: What changes for demat, mutual fund investors; How to nominate

    August 9, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    Direct mutual funds: Why lower fees may not mean higher returns

    August 10, 2026

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Mutual Funds

    Direct mutual funds: Why lower fees may not mean higher returns

    August 10, 2026

    Mutual fund investors got their own ticket to freedom in 2013. It was the year…

    Mutual fund schemes with negative returns surge 3-fold in FY26; only 198 deliver over 10% returns: SEBI annual report

    August 9, 2026

    New SEBI Nomination Rules From September 1: What changes for demat, mutual fund investors; How to nominate

    August 9, 2026

    NPS gets a new edge over mutual funds: Why the old ‘pension product’ tag may no longer fit – Money News

    August 9, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    SIP flows remain steady at ₹28,265 crore in August

    September 10, 2025

    Whatever happened to the wisdom of the bond market?

    August 21, 2024

    Start investing in mutual funds today: what you need to know

    August 21, 2025
    Our Picks

    Direct mutual funds: Why lower fees may not mean higher returns

    August 10, 2026

    Mutual fund schemes with negative returns surge 3-fold in FY26; only 198 deliver over 10% returns: SEBI annual report

    August 9, 2026

    New SEBI Nomination Rules From September 1: What changes for demat, mutual fund investors; How to nominate

    August 9, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹9000 monthly SIP can help you retire at 45 with ₹2 lakh monthly pension

    May 5, 2026
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.