Categories: Financial Planning

Why are Financial Institutions Focusing on ESG Based Funds? The Rise of Responsible Investing

One of the best things about investing in Equity Mutual Funds is transparency.

Any investor can see where the fund manager is investing their money. It has allowed investors to assess the quality or investment strategy of the fund. However, one of the best things about this transparency only came recently.

It is the Rise of ESG criteria for mutual fund schemes.

In India, Mutual Fund companies are acknowledging this ESG criterion and launching specialised ESG funds. ESG is the non-financial factors employed to assess and buy stocks—Environmental, Social and Corporate Governance.

But why is ESG the best thing about transparency in mutual funds?

It looks like an unnecessary restriction to the fund managers in picking stocks to buy.

Why are AMCs giving importance to ESG funds?

End of the day, a good investment deliver profits to its investor.

So, are ESG focused funds profitable to the investors?

Here are the brief yet precise answers to your questions about ESG focused funds. Watch the video below!

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Holistic

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