ESG Equity Fund -An opportunity to align your investments with your values while aiming for favourable financial outcomes.

ESG investing has undergone a significant transformation in the realm of equity investments. An increasing number of investors are recognizing the potential of ESG funds to generate risk-adjusted returns. Nevertheless, it is crucial to ensure that the fund being considered for investment stays true to its ESG principles. Quantum India ESG Equity Fund embodies a strong commitment to integrity and has developed a comprehensive ESG investing strategy, resulting in positive long-term outcomes.

Quantum India ESG Equity Fund follows specific parameters when assessing companies:

·         Portfolio composition: Regardless of the PE ratio, companies are selected based purely on ESG principles, while also considering their financial soundness and liquidity.

·         Governance as a cornerstone: Governance takes centre stage in the analysis, acting as an indicator of poor performance on social and environmental fronts.

·         In-depth research: We conduct extensive subjective evaluations, examining over 200 parameters, and provide a thorough 360-degree perspective on the companies we invest in, including on-the-ground research.

·         Well-diversified equity portfolio: The fund offers a diversified range of equities to minimize reliance on a single sector or market capitalization.

Now is the time to responsibly impact your financial returns and make meaningful investments. Quantum India ESG Equity Fund presents an opportunity to align your investments with your values while aiming for favourable financial outcomes.

Our ideology and experience of seeing well managed and responsible companies deliver better returns over the long term has translated to an outperformance in the real world. The real world all-encompassing ESG track record indeed looks promising. The Quantum India ESG Equity Fund has displayed laudable performance over the past year, delivered  good  returns while effectively managing risk by a thorough assessment of companies on their environmental, social, and governance (ESG) traits and focusing on companies that demonstrate strong sustainability practices and responsible corporate behaviour while being financially sound businesses, encompassing its investment approach.

In terms of returns, the Quantum India ESG Equity Fund has generated CAGR of 16.09% since inception and outperformed its benchmark Nifty 100 ESG  (14.74%) & BSE Sensex TRI (14.48%). For complete fund performance view the table below The  outperformance of the fund indicates the effectiveness and resilience of the investment strategy employed by fund.

Performance of the Scheme						Direct Plan
Quantum India ESG Equity Fund - Direct Plan
				Current Value ₹10,000 Invested at the beginning of a given period
Period	Scheme Returns (%)	Tier 1 - Benchmark# Returns (%)	Additional Benchmark Returns (%)##	Scheme (₹)	Tier 1 - Benchmark# Returns (₹)	Additional Benchmark Returns (₹)##
Since Inception (12th Jul 2019)	16.09%	14.74%	14.48%	17,870	17,074	16,921
May 29, 2020 to May 31, 2023 (3 years)	25.50%	24.65%	26.02%	19,790	19,392	20,037
May 31, 2022 to May 31, 2023 (1 year)	12.25%	8.13%	14.05%	11,225	10,813	11,405

Data as on May 31, 2023.#NIFTY100 ESG TRI, ##S&P BSE Sensex TRI. Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme returns calculation. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). The Scheme is managed by Mr. Chirag Mehta and Ms. Sneha Joshi. Mr. Chirag Mehta is the Fund Manager and Ms. Sneha Joshi is the Associate Fund Manager managing the scheme since July 12, 2019. For other Schemes Managed by Mr. Chirag Mehta please click here.

Our proprietary framework involving on ground research and verification of ESG credentials helps in better evaluation of a company’s ESG practices. This has evolved into an effective approach to identify companies that are best equipped to handle, and even potentially help resolve, any of current global challenges.

Quantum manages to strike a balance by making ESG scores a top priority in capital allocation as well as adhering to broad sector guardrails to ensure risk mitigation and diversification. We aim to find leaders in each industry that are truly well managed, sustainable, quality businesses. Our analysis is guided by the materiality of the issues and endeavors to build a diversified portfolio of ESG compliant companies which in the long run is expected to outperform conventional market indices. Compared to the traditional market-cap based weighted approach, we believe our process is geared to deliver better risk-adjusted returns.

In the evolving world of ESG, investors face two critical issues:

1. The credibility and depth of ESG research - that really defines the universe
2. Sizing of the portfolio /index- Is it reflective of the goodness of ESG investing or is there a conscious effort to mirror the conventional indices to show size?

For many practitioners, ESG scoring comes down to the ability of a company to fill out ESG forms. Given the incentives on green washing, do you only refer to a company’s self-disclosed information or do you seek other types of inputs? A lot of providers rely too heavily on the former, which is a big problem.

We are well aware that there are many “green washing” incentives for companies from brand building to attracting investment flows. And it is our fiduciary duty as custodians of investor capital to navigate any green washing attempts and deliver investors a true sustainability geared portfolio. We understand that ESG is not a “tick the box” desk research. We do not restrict our research to self-declared company disclosures. We try to do a 360 degree company check by talking to various stakeholders like suppliers, vendors, customers, channel checks, employees etc. to get more information to get a granular understanding of the true state of company’s affairs.

In conclusion, the Quantum India ESG Equity Fund has delivered impressive returns while managing risk effectively. With its focus on ESG investing principles, cost-effectiveness, and prudent risk management, the fund provides investors with an attractive investment option in the Indian equity market “to do good while making money”.

 Product Labeling

Name of the Scheme	This product is suitable for investors who are seeking*	Riskometer of scheme	Riskometer of Benchmark
Quantum India ESG Equity Fund An Open ended equity scheme investing in companies following Environment, Social and Governance (ESG) theme Tier 1 - Benchmark NIFTY100 ESG TRI	• Long term capital appreciation • Invests in shares of companies that meet Quantum's Environment, Social, Governance (ESG) criteria.	Investors understand that their principal will be at Very High Risk

^*Inveors should consult their financial advisers if in doubt about whether the product is suitable for them.

Disclaimer, Statutory Details & Risk Factors: The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Mutual fund investments are subject to market risks read all scheme related documents carefully.