Environmental, social and governance funds are rising to fame—but are they right for your investment portfolio?
Despite growing awareness of sustainable investing, market experts say that there are several challenges such as compliance costs and market alignment, particularly for smaller businesses, though they believe that ESG funds in India hold immense potential.
SEBI has made changes in disclosure requirements for ESG funds. There have been many instances of confusing, ambiguous, and incomplete disclosures related to green fund names, their goals, screening criteria, and impact claims
Exposure to AI now represents a “short-term risk to investors,” said Marcel Stotzel, a London-based portfolio manager at Fidelity International.
The top ESG-focused companies in India include Tata Consultancy Services (TCS), Tata Power, Infosys, HDFC Bank, ICICI Bank, Wipro, and JSW Steel, said report by Avendus Capital
Under the current regulatory requirements, mutual funds are permitted to launch only one scheme with ESG investing under the thematic category for equity schemes.