Synopsis: ESG mutual funds offer investors an opportunity to invest in stocks but at the same time select those companies that have good environmental, social, and corporate governance practices. This article shows the list of Top-performing ESG Mutual Funds in India as of 2026.
Investing in Environment, Social, and Governance (ESG) factors has ceased to be a theme of niche investment in India’s mutual fund sector. As investors look for investment instruments which are not only sustainable but also give good returns, ESG funds have emerged as the Popular investment option. Various approaches followed by Indian ESG mutual funds include exclusionary screening or ESG integration among others.
What Are ESG Mutual Funds ?
Mutual Funds in ESG investing are stock-based funds that allocate their investments in companies according to the ESG (Environmental, Social, and Governance) standards in addition to other financial standards. This fund considers various parameters including the effect of the company on the environment, employee relations, good governance, and ethical operations of businesses prior to making any investments.
Top 5 ESG Mutual Funds In India (3-Year Performance)
1. Quant ESG Integration Strategy Fund
- NAV: ₹40.60
- AUM: ₹264.40 Cr
- Expense Ratio: 3.46%
- Exit Load: 1% (within 12 months)
- 3-Year CAGR: 21.8%
2. ICICI Prudential ESG Exclusionary Strategy Fund
- NAV: ₹21.95
- AUM: ₹1,350.75 Cr
- Expense Ratio: 0.99%
- Exit Load: 1% (within 12 months)
- 3-Year CAGR: 14.8%
3. Aditya Birla Sun Life ESG Integration Strategy Fund
- NAV: ₹18.36
- AUM: ₹565.96 Cr
- Expense Ratio: 1.41%
- Exit Load: 1% (within 30 days)
- 3-Year CAGR: 12.7%
4. Kotak ESG Exclusionary Strategy Fund
- NAV: ₹17.47
- AUM: ₹752.38 Cr
- Expense Ratio: 0.97%
- Exit Load: 0.5% (within 90 days)
- 3-Year CAGR: 11.3%
5. SBI ESG Exclusionary Strategy Fund
- NAV: ₹251.99
- AUM: ₹5,265.04 Cr
- Expense Ratio: 1.31%
- Exit Load: 1% (within 12 months)
- 3-Year CAGR: 10.9%
Also read: Top 5 Indian Mutual Funds With the Highest Exposure to International Stocks in 2026
Head to head Comparison
Note: NAV, AUM, expense ratio, and other fund details are sourced from Groww as of June 1st, 2026.
Who Should Invest in ESG Mutual Funds?
- Investors seeking long-term wealth creation through equity investments.
- Individuals who want their investments to align with sustainability and ethical business practices.
- Investors willing to accept moderate to high market risk.
- Those looking for diversified exposure to companies with strong governance and responsible business models.
- Long-term investors with an investment horizon of at least five years.
Conclusion
Investing in ESG mutual funds gives investors an option to create wealth in the long run while contributing towards companies that follow sustainable business practices. Although past performance can be helpful, it is important for investors to consider a variety of factors like investment style, risks, costs, and other objectives of the fund.
Written by Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
