The management of this scheme will be handled by Deputy CIO-Equities Mrinal Singh. The scheme’s bechmark will be the Nifty 100 ESG Index TRI.
ICICI Prudential Mutual Fund has launched a new scheme. Its name is ICICI Prudential ESG Fund. The scheme will invest in companies that follow Environmental, Social and Governance (ESG) themes. The scheme’s new fund offer (NFO) will open for investment from September 21. It will be closed on 5 October.
NFO is the new scheme of an asset management company. Through this, a mutual fund company raises money from investors to invest in instruments such as shares, government bonds.
The management of this scheme will be handled by Deputy CIO-Equities Mrinal Singh. The scheme’s bechmark will be the Nifty 100 ESG Index TRI. Composite ESG scores will be given to companies on environmental, social and governance scales. Allocation in companies will be decided on the basis of the evaluation of this score.
“ESG stands for Environmental, Social and Governance,” said Nimesh Shah, MD and CEO of ICICI Prudential Asset Management Company. We think ESG is the right theme. This leads to quality and sustainable growth. This can become a yardstick for investment in the coming years. The young population in India is very conscious about investment decisions. Most studies show that companies with good ESG scores stand out for investment. Their cash flow is strong. Borrowing cost is low. Returns are stable. Such companies do not pose a risk to the environment and society. ”
The fund house believes that the ESG concept in India is at an early stage. There is a lot of scope to find opportunities in this. At the same time, it has been some time for the international level to make ESG based investment. Initial data suggests that investors are happily accepting the concept.