Abstract

The central objective of this study is to investigate how “Environmental, Social, and Governance” (ESG) factors affect mutual fund performance or communal finance. ESG factors are becoming more and more important in the investing world as people become more conscious of sustainable and ethical investment practices. Both investors looking for socially conscious investing alternatives and fund managers trying to modify their strategies in response to changing investor preferences will find great value in the research’s findings. This study aims to delve into the key factors driving this trend and understand investor perceptions when selecting ESG funds. The research will analyze the growth of ESG funds across various metrics, including annualized return, expense ratio, beta value, and total Assets Under Management (AUM). Additionally, it highlights how both financial development and environmental effects are beneficial. Secondary sources are Government publications, AMFI, Monetary Control, Etmoney websites, news stories, international agencies, and other sources. Consequently, this paper’s conclusions and discussion are predicated on substantial. As a result, this paper also provides some recommendations and tactics that might act as a catalyst for change, and greatly aid in the expansion of, and improvement of the performance of, a variety of mutual fund-themed (ESG) funds.

Keywords:ESG mutual funds, Assets Under Management (AUM), ESG Fund Performance & Growth.

Download PDF