Planning to invest in ESG funds? Start small, but hold for long term

They have the potential to create wealth by circumventing hidden risks, but have limited track record

Today is World Environment Day. If you have been asking yourself whether you can combine your concern for the environment with profitable investment, the answer is yes. Environmental, social and corporate governance (ESG) funds offered by mutual fund houses offer an avenue to do so. Nine such funds are available currently.  

Avoid hidden risks 

While selecting a stock, an ESG fund manager considers the impact of the company’s operations on the environment and the society. He also takes into account its corporate governance standards.

These funds don’t invest in corporates that pollute the atmosphere or follow exploitative practices towards their