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Quantum Mutual Fund launches ESG Equity Fund

The Quantum India ESG Equity Fund (QESG) will invest primarily in stocks of Indian companies.

ET Online|
Jun 18, 2019, 04.54 PM IST
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Quantum Asset Management Company has launched its first open ended ESG (Environment, Social and Governance) fund – Quantum India ESG Equity Fund. The new fund offer will be open for subscription from 21st June to 5th July 2019.

Chirag Mehta, Senior Fund Manager - Alternative Investments and Sneha Joshi, Associate Fund Manager - Alternative Investments will be managing this fund jointly.

According to a press release by the fund house, the Quantum India ESG Equity Fund (QESG) will invest primarily in stocks of Indian companies. The investment strategy of the scheme will be to invest in a basket of stocks after intensive analysis of their environment, social and governance practices/standards, said the fund house.

“Quantum AMC is ahead of its time in recognizing the need for a clean and green Equity Fund. Quantum India ESG Equity Fund is an innovative fund to have exposure to quality, sustainable and well diversified exposure to equities. The fund will be a multi-cap fund based on comprehensive in-house research based on Environment, Social and Governance (ESG) criteria. Investors would certainly like to make this fund a core part of their portfolio,” Jimmy Patel, MD & CEO of Quantum Mutual Fund said.

"Global warming and climate change are very real challenges, and so are income disparities and stakeholder rights. Such ESG factors can have a material impact on the operations of the company. The companies that can foresee the risk of climate change and societal issues and devise policies to tackle them will sustain during t periods of downturn. Business will have no choice but to showcase strong public commitment to corporate responsibility and recognized ESG standards to sustain over the long term,"Chirag Mehta, Senior Fund Manager - Alternative Investments said.

The fund house, through the press release, also made a point about responsibility of companies towards the environment. To determine which companies are best equipped to handle, and even potentially help resolve, global environment and social challenges, it has become essential to have an effective way to evaluate their ESG practices, the fund house said.

According to the press release, the aim of the fund is to follow a comprehensive 'ESG Framework' in order to develop deeper understanding into a company’s management practices, sustainability of the business and risk profile, which would thereby help in understanding the impact on the overall long-term sustainability that drives performance.

The fund house also said that the QESG Fund will invest in clean, sustainable and responsible companies and hence are more credible investments. The ESG compliant companies have lower risk probability and are in a better position to deal with possible negative externalities. It will help the investors to invest in sustainable long term growth prospects, the fund house said.

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