Abstract
The world is witnessing a stupendous rise in Environmental, Social, and Governance (ESG) investment practices due to changing dimensions of risks and consequent clamour for the adoption of sustainable practices. In this scenario, ESG-themed mutual funds have provided an alternative route to ESG investing. This study aims to analyse the growth of ESG mutual funds in India and evaluate their performance using standalone return and risk measures as well as widely recognised risk-adjusted measures, namely, Sharpe Index, Treynor Ratio, Sortino Measure, and Jensen’s Alpha. With respect to growth, the study found that the industry is still in its infancy though a steady and positve momentum is seen both in terms of number as well as assets under their management. Without taking into account the social perks of sustainable investment, the results of the performance analysis revealed Quant ESG Equity Fund to be the best performer. Interestingly, the study also found that all the sample funds have ‘beaten the market’ and earned superior returns. The findings of the study substantiate that ESG investing not only leads to the accomplishment of sustainability goals of investors but also affords them returns higher than the traditional route to investing.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
