Emerging paradigms in socially responsible investment (SRI)—A study with focus on ESG mutual funds in India

Abstract

Socially Responsible Investment (SRI) is an emerging investment avenue in India, encompassing various Environmental, Social, and Governance (ESG) mutual funds within the financial markets. This study adopts both an exploratory and empirical approach, aiming to provide historical insights into the landscape of SRI within India’s financial markets. The study’s objectives include elucidating the concept of SRI, assessing the performance of selected ESG funds in India, and examining the opportunities and challenges within this domain. To evaluate the effectiveness of Environmental, Social, and Governance (ESG) funds, the study employs various risk-adjusted performance measures. Notably, the ICICI Prudential ESG Fund in the Direct Plan-Growth (FDPG) option demonstrates superior overall performance compared to other selected ESG fund schemes in India. Conversely, the Aditya Birla Sun Life ESG FDPG option ranks as the least performer when contrasted with other schemes within the Direct Plan-Growth category.