• Dr. Chhavi

The study of ESG (Environmental, Social, and Governance) integration in Indian mutual funds reveals that funds with robust ESG frameworks tend to deliver superior risk-adjusted returns and exhibit greater resilience in volatile markets. Quantitative analysis showed a strong positive correlation (r = 0.89) between ESG scores and three-year CAGR, with high-ESG funds like Quant ESG Equity and ICICI Prudential ESG outperforming peers, while lower-scoring strategies lagged. Investor surveys underscored that over 60 percent of respondents believe ESG funds yield better long-term outcomes, and nearly 70 percent consider ESG criteria essential in fund selection. Yet, nearly half of investors cite inconsistent ESG data and disclosure practices as barriers, and evidence from case studies (e.g., SBI’s multiple ESG schemes) indicates that methodological rigor—rather than mere ESG labelling—is pivotal to realizing performance benefits. These findings carry clear implications: fund managers should deepen and standardize their ESG research and reporting, educating stakeholders on material ESG factors and showcasing transparent impact metrics, while regulators ought to mandate uniform ESG disclosures and accredit data providers to bolster market confidence. Policy measures such as tax incentives for genuinely sustainable funds and expanded investor-education initiatives can further accelerate ESG uptake. Future work might explore ESG performance across market cycles, extend analysis to other asset classes, and develop standardized impact-measurement frameworks that tie ESG investment to measurable social and environmental outcomes in the Indian context.

ESG Integration, Sustainable Investing, Mutual Fund Performance, Investor Perceptions, Regulatory Framework

"ROLE OF ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) FACTORS IN INVESTMENT DECISION-MAKING: A STUDY OF INDIAN MUTUAL FUNDS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 9, page no.f663-f676, September 2023, Available :http://www.jetir.org/papers/JETIR2309694.pdf

"ROLE OF ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) FACTORS IN INVESTMENT DECISION-MAKING: A STUDY OF INDIAN MUTUAL FUNDS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 9, page no. ppf663-f676, September 2023, Available at : http://www.jetir.org/papers/JETIR2309694.pdf