Published Paper Details:

The present research is an attempt to observe how ESG-focused mutual funds differ from traditional non ESG mutual funds in Indian capital market. Existing literature shows mixed results regarding ESG funds' performance; some studies reporting outperformance and others showing underperformance relative to traditional funds. The study's primary concern is return and variability. There are three ESG mutual funds (Axis, ICICI, and Aditya Birla) who contribute more than 70% of total cumulative funds size under ESG theme in Indian market. These three mutual funds scheme has been considered for sample. Using monthly net asset value data from 2020 to 2024 we employed t-tests and f-tests to analyze mean returns and variance differences across three major ESG funds and their equity counterparts. Our findings reveal that ESG and equity funds demonstrate statistically distinct risk profiles, despite comparable mean returns. These findings suggest that ESG screening systematically affects portfolio construction and risk characteristics. Further, composition analysis shows that ESG and equity funds hold materially different portfolios despite both investing in the same equity instruments.