7 Reasons You Should Invest in Axis ESG Equity Fund

The environment is in turmoil

Every day, there's at least one tabloid covering a story about global warming and the factors that are contributing to it. That’s because over the years climate change has become a serious environmental issue and companies too, have to take some precautionary measures to contribute towards the betterment of our environment. This has also resulted in an increasing number of investors diverting their options towards funds that investing in socially responsible companies. The result, an ESG (environmental, social and governmental) fund now being offered by mutual fund companies among other investment products.

So what exactly are ESG Funds?

Like stated earlier, ESG stands for Environmental, Social, and Governance. New age investors are gradually considering these non-financial factors as well while analyzing the process to identify the potential of both material risks and growth opportunities. Over the past few years, ESG has augmented from just being just an ambiguous concept to a political priority across nations. ESG metrics are gaining popularity among investors to evaluate funds that are investing in socially responsible companies.

What is Axis ESG Equity Fund?

Axis ESG Equity Fund( An Open ended equity scheme investing in companies demonstrating sustainable practices across Environment. Social and Governance (ESG) theme) intends to invest up to 30% in global sustainable companies. Reasons to invest in Axis ESG Equity Fund

1. Axis ESG Equity Fund only seeks quality companies that have the ability to generate sustainable growth. The fund house believes that only companies that run for the long term and companies who take account of their impact on all stakeholders may be able to sustain capital appreciation
2. Axis ESG Equity Fund is a logical extension to Axis’s philosophy which supports the organization’s research on quality companies that can deliver sustainable growth. The idea here is to integrate ESG assessment in the overall investment process of Axis and to launch a dedicated thematic ESG Fund that focuses on ESG issues while constructing the portfolio.
3. Axis ESG Equity Fund intends to invest in overseas securities with a focus on developed markets with a high level of ESG maturity. On the contrary, Axis ESG Equity Fund excludes sectors / themes like tobacco, liquor, defense stocks, etc. that are deemed harmful from a societal perspective.
4. This product may be suitable for investors who are seeking capital gains over the long term and also for those who wish to invest in a Fund that invests in companies demonstrating sustainable practices across Environment, Social and Governance (ESG) parameters.
5. Companies with sustainability characteristics and structural growth generally deliver sustainable growth for its investors. Such companies have low debt rate, and also have lower volatility and reduced drawdown risk. Investing in such a Scheme may also help in diversifying an individual’s overall investment portfolio.
6. The fund was launched with the environmental, social and governance cause of raising funds from investors who have become conscious and are keen on investing in funds like Axis ESG Equity Fund that invests in ESG sustainable companies. If you too feel like contributing towards protecting your environment, you can do it by investing in the socially responsible Axis ESG Equity Fund.
7. All companies which Axis ESG Equity Fund invests in are assessed by Axis using a homogenous framework that uses data as well as analyst assessments. Axis embraces a proprietary, forward-looking and dynamic view of ESG based on a qualitative assessment of each company.

Axis ESG Equity Fund is more than a socially responsible fund; it is an initiative taken to raise awareness of our deteriorating environment. It gives investors an opportunity to invest in a cause that is fighting against various natural calamities like climate change. Environmental, social and governance are the three pillars of this fund. These three parameters might help an individual invest in a sustainable future. ESG investing is a metrics-based approach to interpret and evaluate companies based on their obligations towards the well-being of the environment.

But before going ahead with any investment decision, it is better than an investor first figures out the primary goal of his/her investment. Axis ESG Equity Fund might be one of the mutual fund options available, but investors also need to make sure that the fund that they are investing in, shares the same investment objective as theirs. Also, the risk profile of the fund must sync with your risk appetite. Investments made in Axis ESG Equity Fund is subject to market volatilely, and returns from the scheme aren’t guaranteed. Hence, it is advisable that you invest only within your limitations and avoid over investing. Remember that you can invest smartly using tools like SIP where you can electronically pay for your Axis ESG Equity Fund investments in a systematic and disciplinary manner. Invest smartly and stay committed towards your investments. You too stand a chance of getting closer to your ultimate financial goal.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.