Investing has changed a lot in recent years. More and more people in India are not just looking for money returns, but also want their money to support clean energy, social equality, and good business ethics. That’s where Green and ESG investing comes in. In this blog, we’ll explore how it works and why it’s one of the top investment options in India right now.
What is Green and ESG Investing?
Green investing is when you put your money into companies or projects that help the environment. This could be solar power, wind energy, clean transportation or anything that helps reduce pollution and climate change.
ESG stands for Environmental, Social, and Governance. These three factors are used to measure how responsible a company is. So when you choose an ESG investment, you’re supporting companies that:
- Care about the planet (Environmental),
- Treat people fairly (Social),
- And are managed honestly and transparently (Governance).
Why is Green and ESG Investing Popular in India?
India is growing fast, and so is its pollution. So now, the government and investors are paying attention to cleaner and better ways to grow. From electric vehicles to solar energy and sustainable farming – India is full of green opportunities.
Also, Indian investors today are smarter. They don’t just want to make money – they want to feel good about how they make that money.
This makes green and ESG investing one of the best investment options in India right now. It’s also safer in the long term because these companies are more future-ready.
Some Popular ESG and Green Investment Options in India
Let’s talk about where you can actually put your money if you want to go green:
1. ESG Mutual Funds
Some mutual funds now only invest in companies that follow ESG standards. These funds are managed by experts and are ideal for beginners.
Example: SBI Magnum ESG Fund, Axis ESG Equity Fund.
2. Green Bonds
These are fixed-income securities used to raise money for eco-friendly projects. They offer steady returns and are becoming quite popular.
3. Direct Stocks
You can also invest in companies directly that are known for being green or socially responsible like Tata Power (solar focus), Infosys (strong ESG score), or Adani Green.
4. Green ETFs
These are exchange-traded funds focused on sustainable businesses. Not many options in India yet, but global ones are available via platforms like INDmoney or Groww.
Benefits of ESG and Green Investing
- Good for the Planet – You’re helping to reduce pollution and fight climate change.
- Good for People – Supports fair wages, gender equality, and better work conditions.
- Better Returns in the Long-Term – Many ESG companies are more stable, ethical and trusted. That can mean fewer risks.
- One of the most safe and high return investments in India if chosen wisely.
Challenges to Know
Yes, it’s not all perfect. Here’s what to keep in mind:
- Less awareness: Many people still don’t know what ESG means.
- Limited options: Not as many ESG funds as regular ones.
- Greenwashing: Some companies pretend to be eco-friendly just to attract investors.
So always do your research before putting money anywhere.
Is Green Investing Really a Safe Option?
Yes and No. No investment is 100% safe, but ESG funds usually pick stable and ethical companies. That means fewer scandals or losses due to poor management or legal trouble. So if you are someone looking for safe and high return investments in India, ESG can be a good option. But always spread your money across different assets – don’t put all eggs in one basket.
Tips for Beginners
- Start small with ESG mutual funds.
- Use trusted platforms like Zerodha, Groww, Kuvera.
- Check the fund’s ESG rating and past returns.
- Stay invested long-term.
Conclusion
Green and ESG investing is not just a trend – it’s the future. With the world and India focusing on sustainability, now is the best time to put your money where your values are.
It might not make you rich overnight, but if you’re looking for the best investment options in India that are not just profitable but also meaningful, this is the way to go. Plus, ESG investing is slowly becoming one of the top investment options in India, especially among younger investors.
So why not grow your money and support a better future at the same time?
FAQs – Green & ESG Investing in India
Q1. What is ESG investing in simple words?
ESG means investing in companies that care for the environment, treat people well, and follow good business rules. It stands for Environmental, Social, and Governance.
Q2. Is ESG investing profitable in India?
Yes. Many ESG funds have given strong returns. They are also less risky in the long term, making them one of the safe and high return investments in India.
Q3. Are there ESG mutual funds in India?
Yes. Popular ones include SBI Magnum ESG Fund, Kotak ESG Opportunities Fund, and Axis ESG Fund.
Q4. How to start green investing in India?
You can start by buying ESG mutual funds or green bonds through investment platforms like Groww, Zerodha, or ET Money.
Q5. Why should I choose ESG over regular funds?
Because ESG funds invest only in responsible companies. So you help the environment and society while still earning returns.
I am a digital marketing executive as well as content writer in the personal finance and investment related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of personal finance and investment.
