These days companies are affected by more than just financial factors such as Climate Change, Inequality, Security, Sustainability, Data Security, and more. The public has grown more wary of these large-scale issues and has over the years developed more sensitivity towards them.
People now want to invest in companies that align with their ideologies and demonstrate leadership in solving these problems. They see ESG Equity Funds as the most socially responsible securities to invest their money in.
What Is An ESG Equity Fund
The ESG stands for Environmental, Social, and Governance. ESG funds are portfolios of equities or bonds from companies that have passed the stringent ESG criteria and proven their commitment to fulfilling their social responsibilities.
ESG has gone from being a smirked-over concept to a rallying political cry in the recent decade thanks to the rise of global awareness on issues, particularly to do with the environment. Companies with records of poor commitment to sustainability, treatment of labor, compliance with the government, and corrupt management practices are excluded from ESG Funds.
If you want to ensure that you receive value from your money without contributing to enterprises that harm the environment and people, ESG Equity Funds are the best choice for you. Here are the top 5 performing ESG Equity Funds to look into right now.
Top 5 ESG Equity Funds In India
- SBI Magnum Equity ESG Fund – Regular Plan-Growth
SBI Magnum Equity ESG Fund is not only one of the leading ESG funds today but also the oldest. 90% of the funds are invested in Indian stocks like Infosys, HDFC Bank, TCS, ICICI Bank, Bharti Airtel, and more. Its 1-year return has been 49.62% and 5-year return, 15%, both as of March 2021.
- Quantum India ESG Equity Fund – Regular Plan-Growth
This fund was conceived in 2019 and has over 45 Equity Holdings in environmentally, socially, and financially responsible companies. This fund evaluates companies based on ground research and evaluation of material risks. The 1-year return has been 64.3% as of March 2021.
- Axis ESG Equity Regular Growth
The Axis ESG Equity fund commenced in February 2020 and has shown tremendous growth with a 1-year return of 48.04% as of March 2021. Their top 5 holdings include Avenue Supermarts, HDFC Bank, Kotak Mahindra Bank, and TCS.
- ICICI Prudential ESG Fund
The ICICI Prudential ESG Fund is young, like most ESG’s today since it’s a fairly new concept. There aren’t any long track records available however it’s provided a 3-month return of 7.45% as of March 2021 which is in keeping with the performance of other ESGs.
- Quant ESG Equity Fund
Quant ESG Equity Fund is the youngest ESG to make it to this list. It provided a 3-month return of 17.04% as of March 2021 so it certainly holds promise.
Conclusion
Investing in ESG Equity funds not only guarantees good returns but are also low-risk given the current trend of investing more in companies with good values and foundations.
