Upcoming ESG Schemes
Quantum Mutual Fund and SBI mutual funds came with ESG schemes. Now, other fund houses such as Kotak and ICICI Prudential Mutual Funds seem to interest in the concept of ESG. Those fund houses have filed documents with SEBI for ESG schemes, said a source. Let us know the funds will offer anything special or not.
As of the source, ESG schemes are known as a type of investment scheme that includes building a portfolio of companies to meet high environmental, social and governance standards. In the market, the fund managers look for the company will have a high standard. The concept of ESG not tested in India said a source.
Fund Managers Analysis
According to the reports, ESG fund schemes have much reputation around the world, but MF advisors said that may it’s too early for the Indian market to follow the developed markets. The other fund houses have different opinions on ESG. Chirag Mehta asked that Many that shrug ESG as a new concept, just fail to understand that ESG investing is nothing more than a measure of the ability to do and question to them are -since when did invest in sustainable good companies become a new thing.
ESG, the best way to measure the ability of companies by identifying hidden risks below a company’s business activities, said by the fund managers of Quantum Mutual Fund. However, ESG eliminates many companies like that have to provide tobacco, liquor, gambling as main productions. Plan Ahead Wealth Advisors said that it seems to a good thing. But he thought that they are not sure yet returns in investment.
Investment Advisors Analysis
SBI Magnum Equity ESG Fund is India’s first ESG mutual fund. But the performance of the ESG scheme could not judge how far in Indian markets. As of the source, SBI mutual fund has changed its name SBI Magnum Equity fund to SBI Magnum Equity ESG Fund. The investment advisors said that it just like an index fund and the Indian market will take time to check the ability and worth of ESG schemes. But, there are no records to check how scheme will do in the market.
As of Investment Analyst Chirag Mehta, ESG investing schemes have strong evidence that delivers better returns and has strong ability scores to show better operational performance and are less risky. He said that those companies are typically exposed to tail risks such as environmental accidents or punishment from regulators.
Index funds and ESG funds are good products in Mutual funds schemes. However, Vishal Dhawan believes that there is a specific time at which investors start taking such leaps. Investors who have a well-diversified portfolio can invest in these schemes to get the best of companies in their portfolio. But for new retail investors, they do not have much money and a diversified portfolio.