Top ESG Funds in India

ESG (environmental, social, and governance) funds invest in companies with a strong commitment to ethical practices and social responsibility. 

ESG funds, besides delivering impressive financial returns, also leave a positive impact on society and the environment. This makes them popular among investors looking to contribute to a sustainable future.

ESG investing has emerged as a powerful trend in India, with the global focus shifting toward sustainability. If you are an investor who wants to align your personal values with investment goals, it’s time to check out the best ESG mutual funds in India.

Top 10 ESG Funds in India

Now, check out this list of the top ESG funds in India you can invest in.

1. SBI ESG Exclusionary Strategy Fund

One of the oldest mutual funds in the ESG funds category, the SBI ESG Exclusionary Strategy Fund was launched in 2013. At 124.15%, the absolute returns that this fund delivered in the last five years look impressive. It primarily invests in financial services, technology, and consumer cyclical sectors.

• NAV: INR 264.7103
• AUM: INR 5,806.08 crore
• Expense ratio: 1.31 %
• 1-Year return: 22.96%
• 3-Year return: 13.36%
• 5-Year return: 17.52%

2. ICICI Prudential ESG Exclusionary Strategy Fund

With its 3-year absolute returns standing at 66.6%, the ICICI Prudential ESG Exclusionary Strategy Fund is a popular fund in this category. It invests in sectors like financial services, consumer cyclical, communication services, and healthcare.

• NAV: INR 23.6200
• AUM: INR 1,528.70 crore
• Expense ratio: 1.01 %
• 1-Year return: 31.89%
• 3-Year return: 18.55%

3. Axis ESG Integration Strategy Fund

Investors can get started with the Axis ESG Integration Strategy Fund with a minimum SIP of INR 100 and no lock-in period. This fund invests in industries like financial services, technology, utilities, and consumer cyclical.

• NAV: INR 23.7200
• AUM: INR 1,334.37 crore
• Expense ratio: 1.27 %
• 1-Year return: 25.91%
• 3-Year return: 10.73%

4. Kotak ESG Exclusionary Strategy Fund

The Kotak ESG Exclusionary Strategy Fund performed impressively in the last 3 years, delivering an absolute return of 48.08%. It has a 24.65% asset allocation in financial services and significant investments in consumer cyclical and basic materials.

• NAV: INR 18.4640
• AUM: INR 940.40 crore
• Expense ratio: 0.81 %
• 1-Year return: 24.17%
• 3-Year return: 13.98%

5. Aditya Birla Sun Life ESG Integration Strategy Fund

This ESG fund delivered an absolute return of 41.55% in the last 3 years to investors. Aditya Birla Sun Life ESG Integration Strategy Fund has a 29.32% weightage in financial services, followed by 26.55% in technology, and 20.07% in the consumer cyclical sector.

• NAV: INR 19.6900
• AUM: INR 686.84 crore
• Expense ratio: 1.40 %
• 1-Year return: 32.41%
• 3-Year return: 12.28%

6. Invesco India ESG Integration Strategy Fund 

Invesco has been a celebrated fund house in India. In March 2021, it launched its Invesco India ESG Integration Strategy Fund, which already delivered 49.85% in the last 3 years. Its investments are allocated in sectors like financial services, industrials, and technology.

• NAV: INR 19.9300
• AUM: INR 519.90 crore
• Expense ratio: 1%
• 1-Year return: 33.94%
• 3-Year return: 14.43%

7. Quant ESG Equity Fund

While this ESG fund was launched in 2020, it delivered an absolute return of 77.09% in the last 3 years to investors. This Quant ESG Equity Fund invests in sectors like financial services, energy, consumer defense, technology, and basic materials.

• NAV: INR 36.2694
• AUM: INR 312.26 crore
• Expense ratio: 0.79 %
• 1-Year return: 28.27%
• 3-Year return: 20.99%

8. Mirae Asset ESG Sector Leaders Fund of Fund 

The low SIP amount of just INR 99 and a reasonable expense ratio of 0.46% makes Mirae Asset ESG Sector Leaders Fund a popular choice in the ESG category. Moreover, you don’t need to block your funds due to the absence of a lock-in period with this fund.

• NAV: INR 18.6170
• AUM: INR 18.6170 crore
• Expense ratio: 0.46 %
• 1-Year return: 21.82%
• 3-Year return: 12.30%

9. Quant ESG Best-in-Class Strategy Fund

Quant is one of the better known Asset Management Companies in India. The 5-year absolute return for the Quantum ESG Best Fund is around 148.03%, attracting investors. The fund invests in sectors like consumer cyclical, financial services, and technology.

• NAV: INR 25.8700
• AUM: INR 90.15 crore
• Expense ratio: 0.85 %
• 1-Year return: 26.20%
• 3-Year return: 14.29%

10. WhiteOak Capital ESG Best-In-Class Strategy Fund 

This is a new mutual fund in the ESG category, launched on October 30^th, 2024. WhiteOak Capital ESG Best-in-Class Strategy Fund has already returned 7.99% to investors in the last month. Its top holdings include HDFC Bank, ICICI Bank, TCS, Zomato, and Bharti Airtel.

• NAV: INR 10.5140
• AUM: INR 59.34 crore
• Expense ratio: 0.59 %
• 1-Month return: 7.99%

Conclusion

If you are thinking of diversifying your portfolio while contributing to the sustainable cause, consider investing in ESG funds. We have shortlisted the most promising top 10 ESG funds in India to invest in. You can further narrow down the list based on your needs.

As ESG investing continues to gain traction, these funds serve as excellent options for building a socially conscious portfolio. Explore the minimum amount required to create a SIP and invest in the top ESG funds in India.