ESG theme based mutual funds give up to 32% in three years. What should investors do?
mutual funds have offered an average return of 16.52% in the last three years, data crunching by ETMutualFunds showed. There were around 10 mutual fund schemes in the ESG theme based mutual fund category which includes both active and passive funds.
Quant ESG Equity Fund, the topper in the category, gave 31.58% return in the last three years. ICICI Prudential ESG Exclusionary Strategy Fund offered 17.40% return in the said time period. SBI ESG Exclusionary Strategy Fund gave 16.63% return in a five year period. Both these schemes follow Exclusionary Strategy after Sebi introduced five new sub-categories.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-109616368»>Mirae Asset Nifty 100 ESG Sector Leaders ETF and Quantum ESG Best In Class Strategy Fund gave 15% and 14.34% returns, respectively.
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“In the financial landscape, ESG (Environmental, Social, and Governance) funds have quietly made their mark. Born during the Covid era in 2020, India now boasts 11 ESG funds. These funds consistently outperformed their benchmarks and the broader market over 1-, 3- and 4-year periods,” said Shruti Jain, CSO, Arihant Capital Markets Limited.
The returns offered by ESG theme based mutual funds in other horizons such as one year and five year have always been on the lower side. What factors have affected the performance of these funds? Why are they placed on the bottom of the return chart
