Performance Evaluation of ESG Mutual Funds in India

Abstract

ESG investments have drawn a lot of interest from both investors and customers over the past ten years. Since the past five years, these investments have also gained popularity in the Indian context. Several renowned asset management firms have introduced their ESG programmes and drawn investors. This study evaluated the performance of ESG mutual fund schemes and examined a comprehensive portfolio. The findings imply that financial services and technology were the two sectors that ESG integrated assets found to be most appealing. A benchmark has also been used to compare the performance of ESG schemes. The analysis also highlights the industries and businesses that are most popular in each sector. The study's main goal is to comprehend the development and popularity of ESG mutual funds in India. Academicians, investors, business professionals, and research scholars can use this study as a starting point for their own research and investments. A systematic review of the literature and analysis of secondary data from various research firms involved in wealth management within the BFSI sector are the methodologies used in the current study. The study's key conclusions point to an increase in ESG fund investment in India, though growth is still sluggish when compared to other developed nations' major economies. This might be the case because Indian investors have not yet fully embraced the idea of discounting ESG factors when constructing a portfolio. This study includes a detailed discussion of portfolio and performance as well as risk return ratio.