Published
2024-01-23
Issue
Section
Research Articles
License
The journal adopts the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0), which means that anyone can reuse and redistribute the materials for non-commercial purposes as long as you follow the license terms and the original source is properly cited.
Author(s) shall retain the copyright of their work and grant the Journal/Publisher rights for the first publication with the work concurrently licensed since 2023 Vol.8 No.2.
Under this license, author(s) will allow third parties to download, reuse, reprint, modify, distribute and/or copy the content under the condition that the authors are given credit. No permission is required from the authors or the publisher.
This broad license intends to facilitate free access, as well as the unrestricted use of original works of all types. This ensures that the published work is freely and openly available in perpetuity.
By providing open access, the following benefits are brought about:
- Higher Visibility, Availability and Citations-free and unlimited accessibility of the publication over the internet without any restrictions increases citation of the article.
- Ease of search-publications are easily searchable in search engines and indexing databases.
- Rapid Publication – accepted papers are immediately published online.
- Available for free download immediately after publication at https://esp.as-pub.com/index.php/ESP
Copyright Statement
1.The authors certify that the submitted manuscripts are original works, do not infringe the rights of others, are free from academic misconduct and confidentiality issues, and that there are no disputes over the authorship scheme of the collaborative articles. In case of infringement, academic misconduct and confidentiality issues, as well as disputes over the authorship scheme, all responsibilities will be borne by the authors.
2. The author agrees to grant the Editorial Office of Environment and Social Psychology a licence to use the reproduction right, distribution right, information network dissemination right, performance right, translation right, and compilation right of the submitted manuscript, including the work as a whole, as well as the diagrams, tables, abstracts, and any other parts that can be extracted from the work and used in accordance with the characteristics of the journal. The Editorial Board of Environment and Social Psychology has the right to use and sub-licence the above mentioned works for wide dissemination in print, electronic and online versions, and, in accordance with the characteristics of the periodical, for the period of legal protection of the property right of the copyright in the work, and for the territorial scope of the work throughout the world.
3. The authors are entitled to the copyright of their works under the relevant laws of Singapore, provided that they do not exercise their rights in a manner prejudicial to the interests of the Journal.
About Licence
Environment and Social Psychology is an open access journal and all published work is available under the Creative Commons Licence, Authors shall retain copyright of their work and grant the journal/publisher the right of first publication, and their work shall be licensed under the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0).
Under this licence, the author grants permission to third parties to download, reuse, reprint, modify, distribute and/or copy the content with attribution to the author. No permission from the author or publisher is required.
This broad licence is intended to facilitate free access to and unrestricted use of original works of all kinds. This ensures that published works remain free and accessible in perpetuity. Submitted manuscripts, once accepted, are immediately available to the public and permanently accessible free of charge on the journal’s official website (https://esp.as-pub.com/index.php/ESP). Allowing users to read, download, copy, print, search for or link to the full text of the article, or use it for other legal purposes. However, the use of the work must retain the author's signature, be limited to non-commercial purposes, and not be interpretative.
Click to download <Agreement on the Licence for the Use of Copyright on Environmental and Social Psychology>.
How to Cite
Emerging paradigms in socially responsible investment (SRI)—A study with focus on ESG mutual funds in India
M. Vishali
VIT Business School, Vellore Institute of Technology
Muhammed Shafi M.K
VIT Business School, Vellore Institute of Technology
DOI: https://doi.org/10.54517/esp.v9i4.2006
Keywords: socially responsible investment, ESG mutual funds, financial markets, investment
Abstract
Socially Responsible Investment (SRI) is an emerging investment avenue in India, encompassing various Environmental, Social, and Governance (ESG) mutual funds within the financial markets. This study adopts both an exploratory and empirical approach, aiming to provide historical insights into the landscape of SRI within India’s financial markets. The study’s objectives include elucidating the concept of SRI, assessing the performance of selected ESG funds in India, and examining the opportunities and challenges within this domain. To evaluate the effectiveness of Environmental, Social, and Governance (ESG) funds, the study employs various risk-adjusted performance measures. Notably, the ICICI Prudential ESG Fund in the Direct Plan-Growth (FDPG) option demonstrates superior overall performance compared to other selected ESG fund schemes in India. Conversely, the Aditya Birla Sun Life ESG FDPG option ranks as the least performer when contrasted with other schemes within the Direct Plan-Growth category.
References
[1]. Brodback D, Guenster N, Mezger D. Altruism and egoism in investment decisions. Review of Financial Economics. 2019; 37(1): 118-148. doi: 10.1002/rfe.1053
[2]. Singh M, Mittal M, Mehta P, et al. Personal values as drivers of socially responsible investments: a moderation analysis. Review of Behavioral Finance. 2020; 13(5): 543-565. doi: 10.1108/rbf-04-2020-0066
[3]. Alliance GSI. Global Sustainable Investment Review 2016. GSIR; 2017.
[4]. Scheuth S. Socially responsible investing in the United States. Journal of Business Ethics. 2003; 43(3): 195-213. doi: 10.1023/a: 1022933912939
[5]. Pasewark WR, Riley ME. It’sa matter of principle: The role of personal values in investment decisions. Journal of Business Ethics. 2010; 93(2): 237-253. doi: 10.1007/s10551-009-0218-6
[6]. Lewis A, Mackenzie C. Support for investor activism among UK ethical investors. Journal of Business Ethics. 2000; 24: 215-222.
[7]. von Wallis M, Klein C. Ethical requirement and financial interest: a literature review on socially responsible investing. Business Research. 2015; 8(1): 61-98. doi: 10.1007/s40685-014-0015-7
[8]. Michelson G, Wailes N, Van Der Laan S, et al. Ethical Investment Processes and Outcomes. Journal of Business Ethics. 2004; 52(1): 1-10. doi: 10.1023/b: busi.0000033103.12560.be
[9]. Sparkes R. Socially Responsible Investment: A Global Revolution Albrisbooks USA. Wiley; 2002.
[10]. Garg A, Goel P, Sharma A, et al. As you sow, so shall you reap: Assessing drivers of socially responsible investment attitude and intention. Technological Forecasting and Social Change. 2022; 184: 122030. doi: 10.1016/j.techfore.2022.122030
[11]. Tripathi V, Kaur A. Does socially responsible investing pay in developing countries? A comparative study across select developed and developing markets. FIIB Business Review. 2021; 11(2): 189-205. doi: 10.1177/2319714520980288
[12]. Miller A. Green investment. In: Owen D (editor). Green Reporting: Accountancy and the Challenge of the Nineties. Chapman and Hall; 1992. pp. 242-255.
[13]. Camilleri MA. The market for socially responsible investing: a review of the developments. Social Responsibility Journal. 2020; 17(3): 412-428. doi: 10.1108/srj-06-2019-0194
[14]. Renneboog L, Ter Horst J, Zhang C. Socially responsible investments: Institutional aspects, performance, and investor behavior. Journal of Banking & Finance. 2008; 32(9): 1723-1742. doi: 10.1016/j.jbankfin.2007.12.039
[15]. Yan S, Ferraro F, Almandoz J (John). The Rise of Socially Responsible Investment Funds: The Paradoxical Role of the Financial Logic. Administrative Science Quarterly. 2018; 64(2): 466-501. doi: 10.1177/0001839218773324
[16]. Pienitz R, Vincent WF. Effect of climate change relative to ozone depletion on UV exposure in subarctic lakes. Nature. 2000; 404(6777): 484-487. Doi: 10.1038/35006616
[17]. Nikolakis W, Cohen DH, Nelson HW. What matters for socially responsible investment (SRI) in the natural resources sectors? SRI mutual funds and forestry in North America. Journal of Sustainable Finance & Investment. 2012; 2(2): 136-151.
[18]. Cullis JG, Lewis A, Winnett A. Paying To Be Good? U.K. Ethical Investments. Kyklos. 1992; 45(1): 3-23. doi: 10.1111/j.1467-6435.1992.tb02104.x
[19]. Domini A, Kinder PD.(1994) Ethical investing (Reading MA: Addison Wesley). Available online: http://www.amazon.com (accessed on 28 November 2023).
[20]. Renneboog L, Ter Horst J, Zhang C. The price of ethics and stakeholder governance: The performance of socially responsible mutual funds. Journal of Corporate Finance. 2008; 14(3): 302-322. doi: 10.1016/j.jcorpfin.2008.03.009
[21]. Schwartz MS. The “ethics” of ethical investing. Journal of Business Ethics. 2003; 43(3): 195-213. doi: 10.1023/a: 1022933912939
[22]. Kempf A, Osthoff P. The effect of socially responsible investing on portfolio performance. European Financial Management. 2007; 13(5): 908-922. doi: 10.1111/j.1468-036x.2007.00402.x
[23]. Tripathi V, Bhandari V. Performance of socially responsible portfolios-do economic conditions matter? Journal of Commerce & Accounting Research. 2015; 4(01): 14-30.
[24]. Bischofskonferenz, Wissenschaftliche Arbeitsgruppe fu¨r weltkirchliche Aufgaben der Deutschen. Changing the world with investments? A guide to ethical investment (German). Bonn: Deutsche Bischofskonferenz, Bereich Weltkirche und Migration; 2010.
[25]. Cowton C. Accounting and financial ethics: from margin to mainstream? Business Ethics: A European Review. 1999; 8(2): 99-107. doi: 10.1111/1467-8608.00134
[26]. Camey BF. Socially Responsible Investing. Health Progress; 1994.
[27]. Sandberg J. The Ethics of Investing. Making Money or Making a Difference? University of Gothenburg. Faculty of Arts; 2008.
[28]. Hollingworth S. Green investing: A growing concern. Australian CPA 1998; 68(4): 28-30.
[29]. Tippet J. Performance of Australia’s ethical funds. Australian Economic Review. 2001; 34(2): 170-178. doi: 10.1111/1467-8462.00186
[30]. Tripathi V, Bhandari V. Socially responsible investing—An emerging concept in investment management. FIIB Business Review. 2014; 3(4): 16-30. doi: 10.1177/2455265820140402
[31]. Tripathi V, Bhandari V. Performance evaluation of ethical and conventional funds—A study of taurus mutual fund in India. Financial Markets and Economic Development, Bloomsbury Publishing India. 2015.
[32]. Soni TK. ESG score and mutual fund performance: Empirical evidence from India. Indian Journal of Finance. 2023; 17(3): 37. doi: 10.17010/ijf/2023/v17i3/172671
[33]. Sekhar S, Gudimetla V. Green funds & green investing: A new route to green India. SSRN Electronic Journal. Published online 2011. doi: 10.2139/ssrn.1872370
[34]. Gladish BMP, Parra MDMA, Terol CB, Uría MVR. Socially responsible investment: Mutual funds portfolio selection using fuzzy multiobjective pro-gramming. Documentos de Trabajo Funcas 2007; (350): 1.
[35]. Hamilton S, Jo H, Statman M. Doing well while doing good? The investment performance of socially responsible mutual funds. Financial Analysts Journal. 1993; 49(6): 62-66. doi: 10.2469/faj.v49.n6.62
[36]. Bauer R, Koedijk K, Otten R. International evidence on ethical mutual fund performance and investment style. Journal of Banking & Finance. 2005; 29(7): 1751-1767. doi: 10.1016/j.jbankfin.2004.06.035
[37]. Tripathi V, Bhandari V. Socially responsible stocks: A boon for investors in India. Journal of Advances in Management Research. 2015; 12(2): 209-225. doi: 10.1108/jamr-03-2014-0021
[38]. Tripathi V, Bhandari V. Performance evaluation of socially responsible stocks portfolios across sectors during different economic conditions. Journal of Management Research, 2016; 16(02): 87-105.39.
[39]. Riedl A, Smeets P. Why do investors hold socially responsible mutual funds?. The Journal of Finance. 2017; 72(6): 2505-2550. doi: 10.1111/jofi.12547
[40]. Arceiz FJL. Essays on Socially Responsible Investment. Multidimensional Analysis of Ethical/Socially Responsible and Solidary Mutual Funds [PhD thesis]. Universidad de Zaragoza.
[41]. Banu AAAS. A study on the sustainable investment funds with sepcial reference to state bank of India esg mutual fund shcemes. Turkish Journal of Computer and Mathematics Education (TURCOMAT) 2021; 12(6): 261-266. doi: 10.17762/turcomat.v12i6.1363
[42]. Tripathi V, Bhandari V. Do ethical funds underperform conventional funds? Empirical evidence from India. International Journal of Business Ethics in Developing Economies. 2015; 4(2). doi: 10.21863/ijbede/2015.4.2.009
[43]. Ayadi MA, Ben Ghazi Z, Chabchoub H. Canadian socially responsible investment mutual funds performance evaluation using data envelopment analysis. Multiple Criteria Decision Making. 2015; 77-133. Doi: 10.1007/978-3-319-21158-9_5
[44]. Available online: http://www.amfi.com (accessed on 15 April 2023).
[45]. Public Information Bureau. Vision of a USD 5 Trillion Indian Economy, Government of India. Ministry of Commerce & Industry, PIB Delhi; 2018.
[46]. Vyas V, Mehta K, Sharma R. Investigating socially responsible investing behaviour of Indian investors using structural equation modelling. Journal of Sustainable Finance & Investment. 2020; 12(2): 570-592. doi: 10.1080/20430795.2020.1790958
[47]. Yamahaki C. Responsible Investment and the institutional works of investor associations. Journal of Sustainable Finance & Investment. 2018; 9(2): 162-181. doi: 10.1080/20430795.2018.1558029
[48]. De Graaf FJ, Slager A. Guidelines for Integrating Socially Responsible Investment in the Investment Process. The Journal of Investing. 2009; 18(3): 70-78. doi: 10.3905/joi.2009.18.3.070