What are ESG Funds ? Should you invest in them ?

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What is ESG? ESG investing is used synonymously with sustainable investing or socially responsible investing. While selecting a stock for investment, the ESG fund shortlists companies that score high on environment, social responsibility and corporate governance, and then looks into financial factors. So, the schemes focuses on companies with environment-friendly practices, ethical business practices and an employee-friendly record.
Fund houses say modern investors are re-evaluating traditional approaches, and look at the impact their investment has on the planet. As a result o this paradigm change, asset managers have started incorporating ESG factors into investment practices.
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