What is Axis ESG Equity Fund - Importance of ESG Fund

These days, businesses are getting affected by several non-financial factors like climate change, sustainable farming/mining, privacy and data security, greater regulatory scrutiny and changes in lifestyle. As a result, all stakeholders (investors, customers, regulators) are getting more sensitive towards these issues. Younger investors are showing interest in putting their valuable money where their ideologies belong.

What is ESG?

ESG stands for Environmental, Social, and Governance. Investors are increasingly considering these non-financial factors as part of their analysis process to identify the potential of material risks and growth opportunities. Over the years, ESG has risen from being just a fuzzy concept to a political priority globally. ESG metrics are gaining popularity among investors to evaluate companies in which they might want to invest.

Axis 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 supernormal growth and returns.

ESG is a logical extension to Axis’s philosophy that supports the organization’s research on quality companies that can deliver sustainable growth. The idea here is to integrate ESG assessment in the overall Axis investment process and to launch a dedicated thematic ESG Fund that focuses on ESG issues while constructing the portfolio.

How is ESG incorporated at Axis?

• Axis embraces a proprietary, forward-looking and dynamic view of ESG based on a qualitative assessment of each company
• The process is created based on Schroders’s input – incorporating global best practices
• All companies will be evaluated by Axis using a standardized framework that uses data as well as analyst assessments

The ESG process designed under Schroder’s inputs entails –

• A detailed ESG assessment on stock inclusion in the universe
• An annual stock-level ESG review to capture changes to the operating environment
• A review of specific ESG issue faced by any company in the universe
• Active engagement with management for improved disclosures and proxy voting

Importance of investing in Axis ESG Equity Fund

If you wish to aim for long term capital appreciation by investing in quality companies with sustainable growth prospects using the ESG metrics, then you can consider investing in Axis ESG Equity Fund. Companies that score well on ESG metrics are expected to have lower risk and stability. Axis is well positioned for ESG investing basis its core focus towards quality and sustainable growth.

Responsible investing is widely perceived as the amalgamation of environmental, social and governance (ESG) which factors into sustainable investing and decision-making. ESG criteria usually cover a wide range of topics why may not typically incorporate financial analysis but may hold financial relevance. ESG is becoming increasingly important and may supervise how corporations are responding to social issues like climate change, global warming, etc. in the protection against any accidents.

If you wish to become a part of this globally sustainable phenomenon, you may consider investing in Axis ESG Equity Fund on mf inevstment app with a minimum amount of Rs.5000. The NFO period will start from 22nd January 2020 and last till 5th February 2020.

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