Nifty ESG outperforms Nifty50 as Indians turn to sustainable investment

The research report further revealed that Assets Under Management (AUM) for ESG funds increased by 4 times in two years to reach Rs11,800 in June 2021 as against Rs 2,400 crore in June 2019. 

A new research report by Edelweiss Securities Ltd reveals that in a span of one year, eight environments, social, and governance (ESG) funds were launched in India. In total ten domestic ESG funds have been introduced in the country.

The research report further revealed that Assets Under Management (AUM) increased by 4 times in two years to reach Rs11,800 in June 2021 as against Rs 2,400 crore in June 2019. 

SBI Magnum Equity ESG Fund constitutes 32% of the overall AUM of domestic ESG funds. 

According to LiveMint, Nifty ESG too has seen exponential growth in the past year. In 2021, NiftyESG reported 51% returns while Nifty 50 reported only 47%.

ESG funds are one of the most sought-after investment schemes in 2021. According to a report published by Global Sustainable Investment Review in 2020, global sustainable investing AUM rose 15% to $35.3 trillion. Canada reported a 48% growth in sustainable investment, the highest in the world followed by the US and Japan. 

According to Edelweiss Securities, ESG is a term used to indicate sustainable and ethical investment. ESG focuses on the larger good of society without overlooking financial or economic viability. 

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