It’s merry news for investors holding units of DSP BlackRock World Energy Fund. Regardless of the fact, there was a sharp pullback in the prices of commodities particularly crude oil; the fund is holding its fort. This fund is suited for those investors who have an appetite for long term investment. It can benefit such investors who are banking on the long-term supply-demand gap in oil and alternate sources of energy.
The fund provides investors with an exposure to the crème de la crème of oil and natural gas exploration companies. This not only helps them to plug-in to the international market but also overcome the limitations of Indian markets. The fund has been placed at the zenith of the mutual fund category, courtesy to its 33 percent returns. This significant achievement has been accomplished due to the rallying in the crude oil prices during the said period.
The point that must be noted is, Indian oil companies have little wriggle room in terms of flexibility in the pricing mechanism. Further compounding their problems is the fact that they are not well-diversified in the energy business. In contrast, their global independent counterparts enjoy their presence on a global level as well as complete freedom as far as pricing is concerned.
Newly rising opportunities such as Shale gas have also given much needed investment attention in smaller undertakings. Strong basic fundamentals in stock like Anadarko, in addition to the undemanding valuation of few of the corporations provide a solid case for holding on to this fund. The fund has gained popularity as a good hedge against inflation.
DSPBR World Energy Fund has surpassed market expectation by outperforming some of the local funds like UTI Energy, DSP BR Natural Resources and New Energy and Sundaram Energy significantly over a 1 year period. This is a testimony of the superior opportunities that are at the disposal in this sector globally.
No comments:
Post a Comment