Four ESG Funds’ Names Changed

Under the thematic category of equity mutual funds, some ESG funds have been renamed to comply with the new SEBI regulations. In a circular dated July 20, 2023, the Sebi asked mutual funds to use one of six strategies under the ESG category. The market watchdog has recommended that mutual funds clearly communicate their ESG strategies to investors in the names of the ESG funds and schemes they are investing in.

A number of strategies have been identified, including exclusion, integration, best-in-class and positive screening, impact investing, sustainable objectives, and transition investments. A notice-cum-addendum was sent to investors by the fund houses informing them about the changes.