India currently has only 10 ESG funds. If we apply ESG scoring to all mutual fund schemes of all AMCs, it will widen the scheme selection choice for investors. Can ESG scoring be a win-win for all?
In recent times, we have seen the adverse impact of climate change. Seasonal patterns have changed. Summers are much hotter than before. The monsoon has become increasingly unpredictable, and rainfall distribution across the world has become uneven. Many people have noted these adverse climate changes, and hence they now prefer to invest in ESG-compliant companies and ESG mutual funds.
In this article, we will look at the performance of ESG mutual funds and understand whether you should prefer non-ESG funds over ESG funds.
What is ESG investing?
ESG investing involves investing in companies and mutual fund schemes compliant with the ESG theme. ESG stands for:
Environmental (E): It measures how the companies are protecting or conserving the environment rather than damaging it...