ESG funds in India attract record inflows of $507m from January to March

Morningstar report says funds show resilience to market sell-off

Sustainable funds in India attracted more than $500m (Rs 3,700 crore) between January and March, demonstrating resilience to the market sell-off sparked by Covid-19, according to a report by Morningstar.

The report found ESG funds in Asia (excluding Japan) witnessed an inflow of over $900m for the first quarter of the year, with Indian funds experiencing “record” inflows of $507m. 

The bulk of inflows came from a debut ESG Equity Fund by Axis, India’s largest bank, which launched with $240m in seed capital.

In related news, the MSCI Leaders India ESG Index, which counts Axis Bank as a top constituent, has outperformed its mainstream benchmark. It has declined by 15% so far this year, compared with a 20% fall for the MSCI India Index, reports India Times.