2024, Vol. 5, Issue 2, Part D
An insight into return performance of ESG thematic equity funds in the Indian mutual fund market: A comparative analysis
Author(s): Chhotu Kumar and Anisha Mishra
Abstract: In recent years, Environmental, Social, and Governance (ESG) investing has gained significant traction worldwide, reflecting a growing awareness and prioritization of sustainable and responsible investment practices. In the Indian context, this trend has been particularly notable with the rise of ESG thematic equity funds, which align investment strategies with sustainability and ethical considerations. These funds aim to generate financial returns while simultaneously fostering positive environmental and social impacts. The regulatory landscape in India has also evolved to support the growth of ESG investments. Notably, the Securities and Exchange Board of India (SEBI) has introduced guidelines to enhance transparency and accountability in ESG fund operations. The SEBI circular issued in July 2023 outlines stringent disclosure requirements and investment mandates for ESG funds, aimed at mitigating greenwashing and ensuring genuine adherence to ESG principles. This research paper, titled "An Insight into Return Performance of ESG Thematic Equity Funds in the Indian Mutual Funds Market: A Comparative Analysis" seeks to provide a comprehensive analysis of the performance of ESG thematic equity funds in India. The study is structured around three primary objectives: understanding the current landscape of ESG funds, conducting a comparative performance analysis against market return and benchmarks, and performing an in-depth categorical intra-performance analysis over the past three years using various risk-return model ratios i.e., Sharpe Ratio, Sortino Ratio, Treynor Ratio, Jensen’s Alpha and others. By addressing these objectives, the paper aims to offer valuable insights into the efficacy of ESG investing in the Indian market, contributing to the broader discourse on sustainable finance and responsible investment practices. The findings of this research will be particularly relevant for investors, fund managers, regulators, and policymakers seeking to navigate and capitalize on the growing ESG investment landscape in India.
DOI: 10.22271/27084515.2024.v5.i2d.362
Pages: 284-292 | Views: 356 | Downloads: 188
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How to cite this article:
Chhotu Kumar, Anisha Mishra. An insight into return performance of ESG thematic equity funds in the Indian mutual fund market: A comparative analysis. Asian J Manage Commerce 2024;5(2):284-292. DOI: 10.22271/27084515.2024.v5.i2d.362
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