Awareness of ESG (Environmental, Social and Governance) Funds Among People in India

Tisha Arora

Student, Sharda School of Business Studies

 Sharda University

Dr. Preeti Sharma

Associate Professor

Sharda University

ABSTRACT: 
In India, the conversation around sustainability has grown louder in recent years, with banks, mutual fund houses, and fin tech platforms actively promoting ESG (Environmental, Social, and Governance) investment products. Yet, despite this growing momentum, many everyday investors still feel uncertain or uninformed about what ESG funds actually are and how they work. This research dives into that gap between market enthusiasm and public understanding, aiming to uncover how aware Indian investors truly are about ESG investing and what influences their willingness to participate. Through a structured survey involving working professionals, students, entrepreneurs, and first-time investors, the study explored their familiarity with ESG concepts, trust in sustainability claims, sources of financial information, and perceived benefits and concerns. Interestingly, while most respondents expressed genuine concern for environmental and social issues, only a moderate number could confidently explain what ESG funds invest in. Much of their awareness stemmed from social media, YouTube creators, and word-of-mouth, rather than formal financial advisors or institutions. Although many were drawn to the idea of aligning their values with their investments, hesitation persisted due to fears of green washing, vague disclosures, and potentially higher fees. These findings highlight a critical need for financial institutions to simplify ESG communication, offer transparent reporting, and provide relatable examples and accessible education. Strengthening trust and clarity around ESG investing isn’t just about boosting participation—it’s about helping investors make informed choices that align with India’s broader environmental and social goals.

Key Words: ESG funds, sustainable investment, investor awareness, responsible investing, India