New Delhi, June 25 -- Energy mutual funds provide exposure to companies across the energy value chain, including oil & gas, power utilities, energy infrastructure, and clean energy.

So, let's understand the meaning of energy mutual funds, factors to consider, the top 5 funds, and the pros and cons of investing in them.

Energy funds are thematic equity schemes that invest primarily in companies in the energy sector. These funds invest in oil & gas exploration, refining, power generation and distribution, coal mining, renewable energy, energy equipment, financing, and supporting businesses such as steel and cement.

As per SEBI regulations, thematic funds must invest at least 80% of their assets in the theme they follow. In this case, the...