COMPREHENDING THE INVESTMENT DYNAMICS FOR ESG MUTUAL FUNDS IN INDIA
DOI:
https://doi.org/10.55955/520005Keywords:
ESG, Mutual Funds, India, Investment Dynamics, ESG ScoresAbstract
Traditionally, individual and institutional investors have invested in the markets to earn profits and windfall gains. However, as times change, investors demand better disclosure and transparent reporting on financial and non-financial issues, such as sustainability and governance. ESG mutual funds have been introduced in the Indian financial market to provide ESG-compliant investing for investors. Currently, 10 ESG mutual funds are operational in the Indian market, investing in ESG-compliant corporate securities.
The research has attempted to comprehend the dynamics of these Indian mutual funds in terms of risk, returns, and ESG investments. An analysis of the ESG funds under study reveals that the SBI ESG fund most closely aligns with ESG scores when investing. Quant and ICICI have high returns, but their investments are not ESG-compliant. The results of this study shall support investors, mutual funds, corporations, and regulators in understanding the returns, risks, and investment profiles of ESG funds, thereby helping them chart their future operations and investments in a sustainable manner.
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