Mutual funds remain a favored investment avenue for those keen on portfolio diversification and the potential for higher returns. With the overwhelming variety of funds available, choosing the right one can be daunting. This article focuses on Thematic-Energy Mutual Funds, highlighting their traits, benefits, and top schemes.

Thematic-Energy Funds are equity mutual funds targeting stocks linked to specific themes. Unlike sectoral funds, which zero in on sectors like banking or technology, thematic funds select companies and sectors that coalesce around a broader idea. For instance, a fund with an infrastructure theme might invest in cement, power, and steel companies.

Investing in Thematic-Energy Funds offers unique advantages. The targeted sector approach means these funds aren't truly diversified, which benefits investors seeking focused exposure to a particular theme or sector. This can, however, increase the risk since returns depend heavily on the theme's success. Such funds are more suited for aggressive investors, yet exposure to them should not exceed 10% of the portfolio even for such investors.

Here, we explore some top schemes in the Thematic-Energy Mutual Fund category. Note that the returns illustrated are not guaranteed and may fluctuate with market conditions.

1. DSP Natural Resources and New Energy Fund: Offering an average annualized return of 25.24% over five years, this fund demands careful evaluation of performance and consistency prior to investments.
2. SBI Energy Opportunities Fund: With no ranking and unavailable returns, further research and financial advice are paramount before any commitments.
3. Tata Resources & Energy Fund: Boasting a 27.75% average annualized return over five years, it requires thorough analysis before investing.

These examples represent the top Thematic-Energy Mutual Funds, yet several factors such as historical performance, size, and consistency are critical in making informed investment decisions.

In conclusion, Thematic-Energy Mutual Funds pose an appealing option for aggressive investors yearning for concentrated theme or sector exposure. Still, it’s vital to weigh the potential performance and associated risks. Consulting with a financial advisor is advised to ensure these funds align with individual investment goals and risk tolerance.

*[PFRDA]: Pension Fund Regulatory and Development Authority
*[SWIFT]: Society for Worldwide Interbank Financial Telecommunication
*[AUM]: Assets Under Management