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This study examines and compares the risk-adjusted performance of ESG (Environmental, Social, and Governance) funds and traditional equity mutual funds in India. The research is based on three-year data (FY2022-23 to FY2024-25) and evaluates the funds using multiple performance metrics such as Sharpe Ratio, Sortino Ratio, Treynor Ratio, Jensen's Alpha, Beta and CAGR. Hypothesis testing using Paired T-Test is conducted to statistically determine differences. Findings suggest marginally superior performance by traditional funds in certain risk-adjusted metrics while ESG funds show competitive stability. Practical recommendations for investors and policymakers are discussed.
Keywords:
ESG Funds, Traditional Funds, Risk adjusted returns,Sharpe Ratio, Sortino Ratio, Treynor Ratio, Jensen’s Alpha, Mutual Fund Performance, Sustainable Investing, Indian Mutual Fund Industry , Beta and Volatility, Paired T-Test , Environmental Social, and Governance (ESG) Performance Comparison , Investment Strategies in India
Cite Article:
"Title: An Empirical Study on the Comparative Performance of ESG and Traditional Mutual Funds in India ", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 6, page no.a190-a197, June-2025, Available :http://www.ijrti.org/papers/IJRTI2506025.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator