ESG Funds Becoming Popular in India

  • IASbaba
  • October 3, 2020
  • 0
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ESG Funds Becoming Popular in India

Part of: GS Prelims and GS-III – Mutual Funds

In news

  • The ESG funds are increasingly becoming popular in the mutual fund industry in India.

Important value additions

ESG Fund

  • 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.

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