Limited awareness, dismal returns and a lack of uniqueness are hindering sustainability-focused mutual funds from picking up steam.
Shobhit is a 29-year-old salaried professional in Mumbai who sets aside Rs 30,000 every month to put into a variety of mutual fund schemes. When asked if he has invested in a mutual fund focused on environmental, social and governance issues, he says he is aware of the ESG investment theme but hasn’t looked at specific funds. He then whips out his smartphone and says, “Have you seen their returns? I’d rather put my money in an index fund.”
As rudimentary as it may sound, this seems to be the pervading thought around ESG mutual funds among the six salaried …
Azman writes on climate change, ESG, and how a warming world impacts businesses and people alike. Prior to The Morning Context, he led climate coverage at BloombergQuint, where he started his career as a desk writer.
Writer
azman@mailtmc.com
Mumbai