Axis MoneyPlex Knowledge Nugget - 84
Axis Mutual Fund
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Why Should You be Investing in an ESG fund?
We all have some financial goals to fulfil at some point of time in our lives. But remember that long term financial goals like retirement planning or building a corpus for your child’s grand destination wedding need time. An individual may need to have a long term investment horizon if he / she wants to achieve such long term goals which may need them to create a corpus of at least Rs. 25 lakhs to Rs. 30 lakhs. There are some conservative schemes available for those who have zero risk appetite. However, the only drawback of investing in such schemes is that they usually offer low fixed interest rates. Hence, building a large corpus through such investments may or may not be possible.
While you watch the world become a better place every single day, don’t you want to do your bit and contribute in a unique way? What if we told you that you can actually contribute towards a sustainable environment by investing in some mutual funds? Sounds unique, right?
ESG – Short for Environmental, Social and Governance are the three pillars of every ESG Equity fund that give investors an opportunity to invest in a socially responsible fund whose secondary purpose (primary being capital appreciation) is to tackle issues like global warming, climate change, etc.
What is an ESG fund?
ESG funds usually avoid companies that contribute to environmental hazards like global warming, climate change, carbon footprint, carbon emissions, excessive use of water, companies that do not recycle appropriately, etc. This holistic approach is taken into consideration in most of the ESG funds before investing in a company’s business. ESG practitioners argue that companies that integrate ESG principles have the potential to enhance the reputation and goodwill of that company.
Let us understand the three pillars of ESG in detail
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Statutory Details:?Axis Mutual Fund has been established as a Trust under the Indian Trust Act 1882, sponsored by Axis Bank Ltd. (liability restricted to ?1 Lakh).?Trustee:?Axis Mutual Fund Trustee Ltd.?Investment Manager:?Axis Asset Management Co. Ltd. (the AMC)?Risk Factors:?Axis Bank Ltd. Is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.