Page 51 - BANKING FINANCE MARCH 2024

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D. ICICI Prudential ESG FUND( Growth): 2. NIFTY 100 ESG Index has outperformed NIFTY 50 by
It has AUM Rs 1216 CR. Last year, it has given a return delivering superior returns in 2020.
of 12.2%. For lump sum investment in the fund, the
3. ESG Mutual Funds invest in companies that utilize
minimum amount required is Rs 5000.
sustainable resources.
E. ADITY BIRLA SUNLIFE ESG FUND ( GROWTH):
4. Such invested companies are sensitive to the well-being
With an AUM of Rs 800 CR, this MF has given a return of its employees, stakeholders and society as a whole.
of 8.5% in the past year. The minimum SIP amount for
5. Such companies are committed to clean governance,
this fund is Rs 1000.
hence potential risks are reduced.
Two more Mutual Fund Schemes invest in Green Energy -
ESG Score reflects how well the companies manage their
DSP NATURAL RESOURCES AND NEW ENERGY FUND and
ESG Risks. Research Organisations assign a score to such
Tata Resources and Energy Fund with 5 year CAGR are
MFs.
11.51% and 15.13 % respectively and Expense Ratios are
1.21% and 0.91% respectively. AAA n AA : LEADER.
A, BBB n BB : Average.
ESG Mutual FUNDs will Growth in number and volume of
B n CCC : LAGGARD.
AUM with growing focus on environmental and social issues
coupled with Regulatory initiatives to promote Green
Common investors should keep in mind the following
Investments. At present, there are 12 Mutual Fund Schemes
points while investing in Green Mutual Funds:
in India having ESG as their theme. ESG Green Mutual Funds
1. Funds are in line with the investor's Risk Profile.
are basically Thematic Funds. Investors are recognising
gradually the potential of ESG schemes in terms of financial 2. MFs with higher ESG Scores experience a lower Cost of
returns and positive social/environmental impact. The total Capital compared to companies with lower score. It
AUM of all 12 schemes taken together is Rs 10427 CR. ESG means better returns and higher safety for investors.
Mutual Funds are likely to attract greater attention and 3. ESG Mutual Funds are Thematic Funds but as a theme
witness further growth. it is a little bit different from other kinds of themes.

Thematic Funds are a little bit of volatile.
Three ESG FUNDs, namely SBI, Axis and Quant have
4. Keep a look on Expense Ratios of such MFs.
completed 3 years and returned from 14% to 23% CAGR.
Best part of Green Mutual Funds is that Fund Managers of
Why an investor should invest in Green Mutual such schemes don't invest in companies that deal in products
Funds - and services that are socially and environmentally harmful
1. Investment in Green Mutual Funds carries lower risks like tobacco, liquor and and gambling or having poor
from certain angles. governance practices.

Vaishnaw: India set to reach $300 billion in electronics production
India is set to hit $300 billion in electronics production over the coming years, with $100 billion coming in through
exports, enabled by govt's policies towards pushing manufacturing, communications and railways minister Ashwini
Vaishnaw said. He also highlighted the modernisation and expansion work being done in the railways, including the
revamp of stations across the country, as also the ambitious bullet train project. "The target around electronics are
realistic and achievable. The component ecosystem gives us confidence. We have a lot of design work happening
here too, apart from final manufacturing and other services."
The minister said that Prime Minister Narendra Modi has been taking a deep interest in the modernisation projects,
especially those that are aimed at improving the experience of the masses. He said that around $40 billion are being
spent on railway modernisation by the Modi govt, against $2 billion in the 2004-2014 decade of the previous regime.

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