An Empirical Study on Green Portfolio Management: Assessing the Performance of Sustainable Investment Funds
Year: 2025
Type: article
Abstract: An evaluation of sustainable (green) mutual fundperformance versus traditional equity mutual funds takes placein the Indian context during the period from 2020 to 2024. Theresearch design uses a descriptive approach to analyze 10sustainable funds alongside 10 traditional funds through theperformance indicators of Sharpe Ratio, Jensen’s Alpha, Beta,Standard Deviation together with Compound Annual GrowthRate (CAGR). The risk-adjusted performance assessmentshows that sustainable funds produce better returns thantraditional funds as measured through higher Sharpe Ratiosand Jensen’s Alpha measures. The market sensitivity levels ofsustainable funds are lower because their Beta valuesdemonstrate reduced exposure to market fluctuations. Standarddeviations from ESG funds are slightly higher but the fundsdemonstrate competitive returns through their top performersincluding SBI Magnum ESG Fund and ICICI Prudential ESGFund with CAGRs above 11%. Sustainable investment fundscreate a secure foundation for investors who get access to solidfuture returns in emerging markets and thus present anappealing investment alternative. The research provides crucialimplications which benefit investors at all levels aiming toestablish sustainable finance operations alongside climateconscious investments in India’s capital markets.
Authors: S Mahabub Basha, Aisha Banu, S Mamatha, Jalaja Anilkumar, H G Aravinda, K Chethan Raj
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: hybrid
OpenAlex ID: W4415312773