Friday, December 18, 2020

ESG Investing in Mutual Funds : A New Trend that doing the Rounds Globally & in India Now

Could investing in Socially Responsible Companies now, a good move towards your goals?
ESG investing is used synonymously with socially responsible investing & ESG theme funds select stocks of companies that score high on Environment, Social Responsibility & Corporate Governance (E-S-G).

3 reasons why it is a good time to invest in ESG Theme Funds
1. ESG today is a global phenomenon : Sustainable investing  is becoming an essential part of the investing process across the world, with Europe representing almost half of the current $30.7 trillion of assets in sustainability funds.
2. ESG can optimize financial returns : ESG can aim to generate gains for both investors & the society overall. Historically, ESG investing has rewarded investors over the long term & generated higher risk adjusted returns.
3. ESG helps to avoid downside risks : Investments in ESG compliant companies can also help limit exposure to downside risks, such as a company’s hidden liabilities or issues that can lead to controversies & value erosion.

No comments:

Post a Comment

Top 5 Mutual Funds for 2022 where you can start your Mutual Fund SIP

Top 5 Mutual Funds for 2022 where you can start your Mutual Fund SIP With more than 2,500 mutual fund schemes & 44 AMFI certified Fund C...