The total AUM of ESG mutual funds is about Rs 10,500 crore (as of May 2021).
HSBC Global Equity Climate Change Fund of Fund. So, which are the ESG funds available in India?Īs of now (Jan 2022), there are 10 ESG funds in India: So it would be wrong on my part to comment without sufficient data. In India, most of the ESG funds do not have any long-term track record and it is still early days for ESG schemes in India. Related Reading – All mutual fund categories in Indiaīut leaving aside the moral reasons for investing in ESG funds, is sustainable ESG investing a good idea from an investment perspective? If you believe in the ESG philosophy or support it strongly, then ofcourse, it’s a category you might be very interested in. You might also say that invest the ESG way is one way that you can give back to society, via your investments. This might be a higher cause above your other needs of portfolio seeking good long-term returns. And that is your personal inclination towards the ESG cause. World over, there is a growing consensus that stocks picked on basis of ESG factors offer investors long-term performance advantages. Have a look at the image below ( source): Globally, this trend has been picking pace for some time now. Of the three among E, S and G, the governance (or G) is the most visible of the three ESG factors in India. ESG companies are expected to have a positive societal impact. ESG focuses on sustainable investing where ESG mutual funds invest in a portfolio of stocks that are picked after assessing them on environmental (E), social (S), and governance (G) parameters along with other factors related to financial analysis and portfolio management. For most people, I don’t think it’s such an important fund category that it will be sorely missed in portfolio.īut it’s getting some attention nevertheless, so let’s discuss it a bit.ĮSG is an acronym for Environmental + Social + Governance. Many new funds have been launched in the ESG space over the past few years and in 2020, 20.īut if you haven’t heard much about these, then don’t worry. Stay invested in your mutual funds and monitor performance of the funds closely.ESG mutual funds are a new trend in the Indian mutual fund space. Remember that there are thousand numbers of mutual funds scheme and selection terminology selected by every individual is different. You may or may not find your funds in above Best performing mutual funds that does not mean that your selection is wrong. You might have already invested in mutual funds. Please read the offer document carefully before investing”. Please Remember “Mutual Funds Investments are subject to market risks. Always invest in Growth based mutual funds over dividend based mutual funds. Continue your SIPs for the longer period. Avoid taking any decision based on short-term market movements. If your mutual fund portfolio is generating negative returns, do not panic. Consider STP (Systematic Transfer Plan) for switching from one mutual fund to other. Carry out assessment and balance your mutual fund portfolio at regular interval. If you are unable to identify mutual fund take advice from expert or CFP. Carry out proper analysis and research before making an investment. Never invest in mutual funds based on tips. If you are a risk adverse investor you can start building your portfolio by investing in debt or balance funds. Invest in mutual funds for the long-term at least 3 years or above. Always select SIP route for investment rather than doing lump sum investment. It is not necessary to invest in each category mutual funds to build your portfolio. Invest in few mutual funds based on your goal. It is not necessary to invest in multiple mutual funds. You should build your mutual fund portfolio based on your financial goals. You should be absolutely clear about time horizon expected return and investment objective before making an investment. Points to Consider before making Investment in Mutual Funds So, you need to be careful in the selection of mutual funds. However, you also need to keep in mind that past performance does not guarantee the future performance. You should select fund with higher CRISIL ranking 4 Star or above.Īlso Read – 10 Best Stocks to buy for the long term Best Performing Mutual Funds India last five yearsīelow is the list of best equity-based mutual funds in India with good performance history (last 5 years). You should also check rating of the fund. However, ELSS comes with a lock-in period of 3 years. If you want to reduce tax burden you need to select ELSS (Equity Link Saving Scheme). The returns of the fund depend on the decision taken by the fund manager and its expertise. A Fund manager is a person who makes the decision about buying, selling, or holding the stock in the mutual funds.
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