An insight into return performance of ESG thematic equity funds in the Indian mutual fund market: A comparative analysis

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