Axis MF unveils ESG fund

Our Bureau Mumbai | Updated on January 20, 2020

Axis Mutual Fund has launched new fund offer ‘Axis ESG Equity Fund’ which will invest in companies that focus on environmental, social and governance for sustainable growth.

The new fund offers opens for subscription on January 22 and closes on February 5.

While many businesses remain focussed on hard financial cost/ benefit analysis they ignore intangible costs such as their carbon footprint or waste emissions. This is becoming untenable with all stakeholders — customers, government and regulators pushing for more sustainable business decision making.

The ESG framework provides investment managers with a tool to capture these issues in a comprehensive manner. ESG analysis allows investors to assess longer term and harder to measure issues that can have a major impact on stock performance and thus can become an important source of bringing down portfolio risk.

Chandresh Kumar Nigam, Managing Director & CEO, Axis AMC, said by combining ESG analysis with traditional financial metrics can provide a more holistic understanding of each company in the portfolio.

“We believe investors of Axis ESG Equity Fund will be a rich source of alpha in the long term,” he added.

Published on January 20, 2020

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