ESG Funds Becoming Popular in India
Part of: GS Prelims and GS-III – Mutual Funds
- The ESG funds are increasingly becoming popular in the mutual fund industry in India.
Important value additions
- ESG is a combination of three words – Environment, Social and Governance.
- It is a kind of mutual fund.
- Its investing is used synonymously with sustainable investing or socially responsible investing.
- The ESG fund focuses on companies with environment-friendly practices, ethical business practices and an employee-friendly record while other funds don’t.
- The fund is regulated by Securities and Exchange Board of India (SEBI).
Do you know?
- As ESG funds gain momentum in India, companies will be forced to follow better governance, ethical practices, environment-friendly measures and social responsibility.
- The first ESG mutual fund was launched by the State Bank of India – SBI Magnum Equity ESG Fund.