Nowadays when people invest money, they don’t just look at the returns – they also look at whether their money is being used for good work or not. This trend is called ESG Investing.
✅ What is the meaning of ESG?
The full form of ESG is:
E = Environmental – Does the company take care of the environment or not? (Pollution, renewable energy, etc.)
S = Social – How does the company behave with its employees and society? (Fair wages, no discrimination)
G = Governance – Is the company\’s management transparent or not? (No corruption, fair practices)
So in simple language, ESG investing means investing money in such companies which take care of the planet, people, and policies.
🌍 Why has ESG Investing become so popular in 2025?
🔥 1. Everyone can see the effect of Climate Change
People now want to invest in companies that protect the environment.
💼 2. Responsible Companies = Safe Investment
Companies that take care of employees and the public are safer in the long term.
📈 3. Awareness has increased in Urban India, US and UK
Today\’s investors (especially Gen Z and millennials) want their money to make an impact as well as give returns.
💰 4. Performance of ESG Funds is also good
Many times ESG mutual funds have given better returns than traditional funds.
🏦 How to do ESG Investing?
You can do SIP in ESG Mutual Funds
You can also choose direct stocks (companies which have good ESG score)
Some popular ESG funds:
SBI Magnum ESG Fund
Axis ESG Fund
ICICI Prudential ESG Fund
You can take these funds from online platforms or from a Mutual fund distributor
⚠️ Things to note:
Not every company that gets the ESG tag is 100% perfect (sometimes greenwashing also happens).
You should look at the fund\’s portfolio and understand where the money is being invested.
The goal of ESG investing is long-term returns + social good.
🤝 Conclusion – Should you do ESG Investing?
If you want your money to not only make a profit but also have a positive impact – then ESG Investing is perfect for you.
Today, whether you are in India or the US/UK, ESG is a smart and responsible choice.
📞 Need Help in ESG Mutual Fund Investment?
I can help you choose ESG funds, create a SIP plan and create a safe portfolio.