The NFO opens for subscription on December 04, 2020, and closes on December 18, 2020.
Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Ltd, launched the Aditya Birla Sun Life ESG Fund currently. The ESG fund is an open-ended equity scheme investing in corporations following the Environment, Social, and Governance (ESG) theme. The Fund will participate in ESG aligned current and emerging possibilities, do away with risky corporations, and invest in higher high quality and sustainable development compounders to produce superior danger-adjusted returns.
The minimum application quantity for this fund is set at Rs 500 and in multiples of Re 1 thereafter, throughout the New Fund Offer period. Investors can invest in this fund each via the SIP or lumpsum route. The NFO opens for subscription on December 04, 2020, and closes on December 18, 2020.
Aditya Birla Sun Life Mutual Fund has partnered with top international ESG analysis provider ‘Sustainalytics’ for ESG scores and ratings which will be the filter for defining the investment universe. Each business will be scored on 3 pillars of ESG and non-conforming sectors will be excluded. This will additional be screened basis basic evaluation and economic parameters with a mixture of prime-down and bottom-up approaches. The fund will be market place cap agnostic. Investors can invest in international securities adhering to ESG practices up to 35 per cent of the fund’s net assets
A. Balasubramanian, MD, and CEO, Aditya Birla Sun Life AMC stated, “ESG has become increasingly important parameters of investment decisions worldwide, beyond the traditional financial factors. This has gained further importance after Covid-19, an insight that also our survey across 1600 plus respondents shows. The majority of respondents felt their attitude towards ESG in investment decision making had changed after the pandemic.” He additional adds, “This is an important shift in mindset. ESG concept is at a very nascent stage in India and is widely unexplored, though it’s an established theme globally. With the Indian Government also emphasizing its ESG focus recently and global flows into ESG focused sectors and companies seeing a consistent increase, there is potential for this theme to play out secularly”.
Experts say historically ESG compliant corporations have been located to be much less risky, have superior operational functionality, and generated superior returns as well. The portfolio appears to advantage from increasing flows into ESG compliant corporations which increases the possibility of re-rating and augurs nicely for longer-term market place functionality. From huge institutions to person investors, there is a increasing consideration of non-economic dangers in investment choices. ESG lens enables us to appear beyond the standard investment parameters to recognize higher high quality socially accountable corporations for investing.