Title: Do socially responsible funds perform better? A case study of India

Authors: Ruchi Kansil

Addresses: Vivekananda School of Business Studies, Vivekananda Institute of Professional Studies, New Delhi, India

Abstract: An investment is considered socially responsible depending on the nature of the business the investee company conducts. The growing importance of socially responsible behaviour has led to the emergence of socially responsible funds which are mutual funds which invest in socially responsible companies. Existing research suggests that since the beginning of the early 20th century, these investors are a means by which significant influence can be exerted over businesses to act responsibly. The present paper attempts to explore whether or not such funds outperform the market in the Indian context. The results corroborate the fact that socially responsible funds do not underperform the market. As a consequence, the study intends to fill the existing gap in the literature on socially responsible funds as well as socially responsible investments. The results of the paper would help to promote socially responsible investment practices amongst investors and initiate financial authorities, government, regulators and other stakeholders to formulate policies and norms for the same.

Keywords: socially responsible investment; SRI; socially responsible funds; responsible behaviour; ESG investment; ESG funds; ESG Indices; ESG Benchmark; SRI Benchmark; India.

DOI: 10.1504/IJBG.2023.135870

International Journal of Business and Globalisation, 2023 Vol.35 No.4, pp.419 - 429

Received: 20 Jul 2019
Accepted: 23 Feb 2020
Published online: 09 Jan 2024 *

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