A mutual fund is a pool of money through which one can buy various assets including stocks, bonds etc. A mutual fund is mostly for those who do not dedicate their full-time into investing, and so, a professional focuses on their investing. Through mutual funds, one can pick and choose the fund that best suits one’s needs. Saumya Shah, Founder of investment platform ‘Tarakki’ said in an Instagram live session on March 27, that an equity fund comprises high risks and high returns, whereas a debt fund consists of low risks and low returns. According to Mr Shah, ESG or environmental, social, and governance funds are gaining prominence in the market these days as more young investors are adopting the concept of sustainability.
Sustainability related to the environment, social causes, or even following business ethics have gained importance and become critical for investors. ESG ( environmental, social, and governance) funds are those funds whose allocation of assets primarily includes the bonds and shares of only those companies that are evaluated and have fulfilled the criteria of environmental, social, and governance.