'ESG investing reduces potential risks in your mutual fund portfolio' SECTIONS Share Synopsis The potential risks in the portfolio are lowered as these filters avoid investments in those companies/ sectors where, in the future, there might be a threat to the conduct of business in its current form due to environmental , social factors or non-transparent governance practices. Shutterstock.com ESG funds have started to pick up pace in the Indian Mutual Fund industry. Many fund houses have come up with ESG funds in the last one year. Shivani Bazaz of ETMutualFunds.com spoke to Amit Nigam- Fund Manager, Invesco Mutual Fund, to understand more about the ESG funds and their outlook in Indian markets. Edited interview.