ESG funds: Inflows in sustainable funds surge 76% to Rs 3,68

ESG funds: Inflows in sustainable funds surge 76% to Rs 3,686 cr in FY21


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NEW DELHI: Driven by increased investor interest in environmental, social and governance issues, sustainable funds in India attracted Rs 3,686 crore in the 2020-21, a jump of 76 per cent from the preceding fiscal.
Moreover, the COVID-19-led crisis has only accelerated the demand for sustainable investing.
Sustainable or ESG (environmental, social, and governance) funds in India witnessed an inflow of Rs 3,686 crore in just-concluded fiscal as compared with Rs 2,094 crore in 2019-20, according to Morningstar data.
Such funds offer exposure to themes such as renewable energy, low carbon, green transport and environmental protection.
Morningstar India Director and Manager (Research) Kaustubh Belapurkar said, "While still early days in India from an ESG funds perspective, the launch of ESG funds has increased investor awareness significantly. Many domestic asset domestic managers are already incorporating ESG principles in their overall investing framework."

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