ESG Funds Becoming Popular in India

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.