Assets of ESG funds rise 5x in four years to Rs 12,450 crore, shows data

The assets under management of funds linked to the environmental, social and governance (ESG) theme have seen a fivefold jump in the last four years.

The data from Morningstar India shows that the fund size of ESG funds stood at Rs 12,447 crore as of March 2022, up from Rs 2,268 crore in March 2019.

In the last few years, several fund houses have focused on launching ESG-based funds, to tap into the growing investor interest for sustainable investing. Typi­cally, these funds invest in companies that are focused on conserving the environment, positively impacting communities that they operate in, and conducting business