Which are the best Thematic-ESG funds for SIP investment?

Based on average 5-year rolling returns, the best Thematic-ESG funds for SIP are SBI ESG Exclusionary Strategy Fund - Direct Plan with 5-year average rolling return of 14.41%, -- with 0.00%, and -- with 0.00%. You can start a SIP in Thematic-ESG funds with as little as ₹99 per month.

What is the minimum amount to invest in Thematic-ESG funds?

You can start investing in Thematic-ESG funds with a minimum SIP of ₹99 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Thematic-ESG fund returns taxed?

Gains from Thematic-ESG funds held for less than 12 months are taxed at 20% (Short-Term Capital Gains). Gains on units held for 12 months or more are taxed at 12.5% (Long-Term Capital Gains), with ₹1.25 lakh per year being exempt per financial year. Dividends (IDCW) are taxed at your applicable income tax slab rate.

Which Thematic-ESG funds have the lowest expense ratio?

Among Thematic-ESG funds, Mirae Asset Nifty 100 ESG Sector Leaders FoF - Direct Plan has the lowest expense ratio at 0.08% (Direct Plan), followed by Baroda BNP Paribas ESG Best-in-class strategy Fund - Direct Plan at 0.70%. Lower expense ratios directly improve your net returns over the long term.

How many Thematic-ESG mutual funds are available in India?

There are currently 11 Thematic-ESG mutual funds available in India across different fund houses. You can compare all 11 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Thematic Esg

Thematic-ESG Funds

Q: What are the top performing Thematic-ESG funds?

Based on 1-year returns, the top performing Thematic-ESG funds are Quant ESG Integration Strategy Fund - Direct Plan with 14.34% return, Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan with -1.55% return, and SBI ESG Exclusionary Strategy Fund - Direct Plan with -2.84% return. The category average 1-year return is -2.96%.

Q: Which Thematic-ESG funds have given the best returns over 3 years?

Over a 3-year period, the best performing Thematic-ESG funds are Quant ESG Integration Strategy Fund - Direct Plan with a 21.76% CAGR, Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan with 14.78% CAGR, and SBI ESG Exclusionary Strategy Fund - Direct Plan with 12.65% CAGR. The category average 3-year return stands at 12.37% CAGR.

Q: Which Thematic-ESG funds have given the best returns over 5 years?

Over a 5-year period, the top Thematic-ESG funds are Quant ESG Integration Strategy Fund - Direct Plan with a 21.93% CAGR, Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan with 11.88% CAGR, and SBI ESG Exclusionary Strategy Fund - Direct Plan with 10.68% CAGR. The category average 5-year return is 11.11% CAGR.

Q: What are the largest Thematic-ESG mutual funds by assets?

The largest Thematic-ESG funds by Assets Under Management (AUM) are SBI ESG Exclusionary Strategy Fund - Direct Plan with ₹ 5,265.04 crore, ICICI Prudential ESG Exclusionary Strategy Fund - Direct Plan with ₹ 1,350.75 crore, and Axis ESG Integration Strategy Fund - Direct Plan with ₹ 1,072.22 crore. Together, there are 11 Thematic-ESG funds available in India.

ESG stands for Environmental, Social, and Governance. ESG mutual funds invest in companies that practice business in a sustainable manner covering all three pillars of the ESG framework.

Total Schemes

No. of schemes

Total AUM

₹ 0.11Lakh Cr

As on latest

Category Return (5Y)

11.11 %

CAGR

Benchmark

10.23%

NIFTY 500 TRI

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Thematic-ESG	-0.15 %	-7.16 %	-2.96 %	12.37 %	11.11 %	12.39 %	-6.54 %
Benchmark	-0.91 %	-7.29 %	-0.30 %	12.19 %	10.23 %	13.55 %	-7.33 %

Top Thematic-ESG Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
SBI ESG Exclusionary Strategy Fund - Direct PlanNAV: ₹251.99	5,265.04 Cr	-2.84%	10.88%	10.64%	1.31%
ICICI Prudential ESG Exclusionary Strategy Fund - Direct PlanNAV: ₹21.95	1,350.75 Cr	-7.11%	14.78%	11.88%	0.99%
Axis ESG Integration Strategy Fund - Direct PlanNAV: ₹21.76	1,072.22 Cr	-3.33%	10.26%	8.27%	1.33%
Kotak ESG Exclusionary Strategy Fund - Direct PlanNAV: ₹17.47	752.38 Cr	-3.05%	11.26%	9.25%	0.97%
Baroda BNP Paribas ESG Best-in-class strategy Fund - Direct PlanNAV: ₹10.16	646.93 Cr	-	-	-	0.70%
Aditya Birla Sun Life ESG Integration Strategy Fund - Direct PlanNAV: ₹18.36	565.96 Cr	-1.55%	12.65%	10.68%	1.41%
Invesco India ESG Integration Strategy Fund - Direct PlanNAV: ₹17.02	375.93 Cr	-9.80%	10.13%	9.78%	1.24%
Quant ESG Integration Strategy Fund - Direct PlanNAV: ₹40.60	264.40 Cr	14.34%	21.76%	21.93%	3.46%
Quantum ESG Best In Class Strategy Fund - Direct PlanNAV: ₹23.58	92.31 Cr	-5.76%	9.59%	9.16%	0.74%
Mirae Asset Nifty 100 ESG Sector Leaders FoF - Direct PlanNAV: ₹17.73	84.16 Cr	-4.84%	10.01%	8.41%	0.08%
WhiteOak Capital ESG Best-In-Class Strategy Fund - Direct PlanNAV: ₹9.83	53.03 Cr	-5.64%	-	-	1.11%

About Thematic-ESG Funds

What is it?

ESG stands for Environmental, Social, and Governance. ESG mutual funds invest in companies that practice business in a sustainable manner covering all three pillars of the ESG framework.

Objective

The objective of ESG funds is to generate decent returns by investing in companies that carry out their business covering all three pillars of the ESG framework. They try to promote sustainable business practices.

Suitability and opinion

These funds are suitable for investors who believe in the cause of sustainability and environmental well-being. The returns of ESG funds can vary a lot in different market conditions. We believe that this category is a good option if you want exposure to Indian equity markets. Here, there are no rules on stock selection or allocation. So the fund managers have complete freedom to manage the fund. As these funds invest in stocks with different market caps, they are suitable for investors with a high-risk appetite. We feel that these funds are the best suited for long-term wealth creation. You can consider investing in these funds if you have a minimum investment horizon of 5 years.

Thematic-ESG vs Other Categories

5Y CAGR Return Comparison

12.07%

11.23%

11.11%

10.12%

8.85%

Sectoral-Banking

Large Cap

Thematic-ESG

Thematic-MNC

Sectoral-Technology

Key Insights

Min Investment Amt

₹ 1,000.00

AUM

₹ 646.93Cr

1Y Returns

Expense Ratio

0.70%

Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan

Fund Performance: Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan has given 12.65% annualized returns in the past three years and 10.68% in the last 5 years. The Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan comes under the Equity category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life ESG Integration Strategy Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 500.00

AUM

₹ 565.96Cr

1Y Returns

-1.55%

Expense Ratio

1.41%

Invesco India ESG Integration Strategy Fund - Direct Plan

Fund Performance: Invesco India ESG Integration Strategy Fund - Direct Plan has given 10.13% annualized returns in the past three years and 9.78% in the last 5 years. The Invesco India ESG Integration Strategy Fund - Direct Plan comes under the Equity category of Invesco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Invesco India ESG Integration Strategy Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 375.93Cr

1Y Returns

-9.80%

Expense Ratio

1.24%

Quant ESG Integration Strategy Fund - Direct Plan

Fund Performance: Quant ESG Integration Strategy Fund - Direct Plan has given 21.76% annualized returns in the past three years and 21.93% in the last 5 years. The Quant ESG Integration Strategy Fund - Direct Plan comes under the Equity category of Quant Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Quant ESG Integration Strategy Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 264.40Cr

1Y Returns

14.34%

Expense Ratio

3.46%

Quantum ESG Best In Class Strategy Fund - Direct Plan

Fund Performance: Quantum ESG Best In Class Strategy Fund - Direct Plan has given 9.59% annualized returns in the past three years and 9.16% in the last 5 years. The Quantum ESG Best In Class Strategy Fund - Direct Plan comes under the Equity category of Quantum Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Quantum ESG Best In Class Strategy Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 92.31Cr

1Y Returns

-5.76%

Expense Ratio

0.74%

Mirae Asset Nifty 100 ESG Sector Leaders FoF - Direct Plan

Fund Performance: Mirae Asset Nifty 100 ESG Sector Leaders FoF - Direct Plan has given 10.01% annualized returns in the past three years and 8.41% in the last 5 years. The Mirae Asset Nifty 100 ESG Sector Leaders FoF - Direct Plan comes under the Equity category of Mirae Asset Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Nifty 100 ESG Sector Leaders FoF - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 99.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 84.16Cr

1Y Returns

-4.84%

Expense Ratio

0.08%

WhiteOak Capital ESG Best-In-Class Strategy Fund - Direct Plan

Fund Performance: The WhiteOak Capital ESG Best-In-Class Strategy Fund - Direct Plan comes under the Equity category of WhiteOak Capital Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in WhiteOak Capital ESG Best-In-Class Strategy Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 500.00

AUM

₹ 53.03Cr

1Y Returns

-5.64%

Expense Ratio

1.11%