As the NFO closing date is approaching for DSP Blackrock World energy fund I have been getting lots of emails about my views on  DSP Blackrock World Energy Fund and should they invest in the fund or not. In this Article I would analyze how good is DSP BlackRock World Energy Fund in NFO stage and whether DSP BlackRock World Energy Fund offers anything unique for the investors or its just yet another fund.

Now the first thing you should understand is DSP Blackrock World Energy Fund is not just a fund but its a fund of fund. What it means is DSP Blackrock World Energy Fund would not directly invest into any companies or stocks but it would invest in other related funds. Scheme has mentioned that it would invest in BlackRock Global Funds – World Energy Fund & BlackRock Global Funds – New Energy Fund but scheme document also states that they can invest in any other Global funds apart from BlackRock Global Funds – World Energy Fund & BlackRock Global Funds – New Energy Fund depending on the view of the investment manager.

Now both the funds are Global Funds and also other schemes where this fund would invest would be Global Funds and so there can be uncertainty and preferably losses for currency movements as well.

Pros and Cons of fund.

1. Gives your portfolio an international exposure
2. Is a Global fund of fund concentrating on Energy.
3. It is unique in its own kind because we do not have any fund of fund in energy sector.
4. It has forex loss factor associated.

Now its the call of investor if he wishes to invest.

As a personal view of mine I would not be investing DSP Blackrock World Energy Fund NFO because

1. I have never been FAN of NFO.
2. For international exposure I would prefer Fidelity International Oppurtunity Fund.
3. For investing in Energy fund I would go with Sundaram BNP Paribas Energy Opportunities Fund.

But depending on the performance of the fund in the future can consider this to be added into my portfolio.