New Delhi, July 24 -- The environment, social and governance (ESG) mutual funds are the ones which invest in companies which demonstrate strong environment, social and governance practices.

Although these are quite diverse criteria to choose from, still they are strung together by a common thread of 'ethical behaviour' manifested through commitment towards environment, society and governance practices.

It would not be wrong to say that the phenomenon of ESG is still quite contemporary and till date, most investors do not aim to invest in stocks or funds based on their commitment towards ESG. The key goal of any investor is usually not to invest in one category of companies, but to maximise the chances of higher earnings.

Therefore, whe...