ESG investors are focused on being sustainable and socially responsible. Hence, they expect the ESG scheme to tick all the correct boxes to form a portfolio of stocks of companies with high scores in all three components i.e. environmental, social and governance. Companies with low ESG scores are less likely to receive funding from ESG investors. The focus here is not just to earn capital appreciation, but also to invest with the hope of reducing the carbon footprint by leaving companies that contribute heavily to global warming and climate change.
What is Axis ESG Equity Fund?
Axis ESG Equity Fund is an open-ended equity scheme investing in companies exhibiting sustainable practices on environmental, social and governance (ESG) themes. The fund will invest up to 30% in global sustainable companies. It will invest directly in foreign securities with a focus on developed markets with a high level of ESG maturity.
Axis ESG Equity Fund
It aims to exclude those sectors and industries which are considered harmful from the social point of view. It does not include companies dealing in tobacco and alcohol, except defense shares, etc. The Axis ESG Equity Fund product may be suitable for investors who want capital appreciation over the long term and for those who wish to invest in companies that exhibit sustainable practices in environmentally, social and governance (ESG) parameters. .
Axis’s approach to ESG investment
Axis understands ESG analysis and realizes how important it is for an ESG score to be adequate. The fund house considers only those quality companies that can generate sustainable growth. The fund house is of the view that only companies that have the long run and their impact on all stakeholders can be able to sustain supranormal growth and returns.
The ESG is a rational relaxation to Axis’s philosophy that supports the organization’s extensive background research on quality companies that can deliver sustainable growth over the long term. The idea behind choosing companies with high ESG scores is to successfully integrate ESG valuation into the overall Axis investment process and launch a dedicated thematic ESG fund that focuses on ESG issues while building a portfolio.
How is ESG incorporated into Axis?
- Axis adopts ESG’s proprietary, forward-looking and dynamic approach based on a qualitative assessment of each company
- The process is built in discussions with Schr̦ders Рincorporating global best practices
- All companies are evaluated by Axis using a standardized framework that uses data as well as analyst assessments
Benefits of Investing in Axis ESG Equity Fund
- Axis ESG Equity Fund is a diversified equity fund that invests in companies across market capitalization with emphasis on ESG.
- Axis ESG Equity Fund aims at providing investors a perfect mix of equities to provide long term returns while mitigating the risks associated with market volatility.
- Axis ESG Equity Fund continuously endeavors to invest in quality companies with high growth potential with an aim to deliver risk adjusted returns to the investors.
The ESG process prepared under Schroder’s input includes –
- A Detailed ESG Valuation on Stock Inclusion in Cosmos
- An annual stock-level ESG review to capture changes in the operating environment
- A review of the specific ESG issue faced by any company in the universe
- Active engagement with management for better disclosure and proxy voting
Consider starting a SIP in ESG Fund
A systematic investment plan is an investment tool where ESG investors can invest small fixed amounts at regular intervals over a specified time period.
Here is a simple example to help you understand how you can build wealth by starting a SIP in Axis ESG Equity Fund –
Let’s say you want to build a corpus of 12 lakhs over the course of 10 years using Axis ESG Equity Fund. You can do this by starting a monthly SIP of Rs. 10,000 in Axis ESG Equity Fund. At the end of your SIP investment journey, you would have created a corpus of not only Rs. 12 lakhs, but you may be able to earn some capital appreciation on the amount invested.
sip Investors are also known to benefit from the power of compounding and rupee cost averaging. When you start a monthly SIP, a predetermined amount is auto-debited and transferred to the fund on a specific date every month. Through SIP one can target their long term financial goals by investing disciplinedly in Axis ESG Equity Funds.
Axis ESG Equity Fund
An open-ended equity scheme investing in companies exhibiting sustainable practices on environmental, social and governance (ESG) themes
Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.