Authors: Dr. Kasireddy Sandeep Reddy, GLN Sravan Kumar
Abstract: This study investigates the financial performance of Green Mutual Funds in India compared to traditional mutual funds over 2019–2024. Using secondary quantitative data from reliable financial sources, the study examines annual returns, risk–return characteristics, return consistency, and the impact of ESG factors. Analytical techniques include descriptive statistics, t-tests, ANOVA, correlation, and regression analyses. Results indicate that Green Mutual Funds deliver competitive returns with lower volatility and superior risk-adjusted performance relative to traditional funds. While mean returns do not differ significantly, ANOVA reveals notable variation among Green Mutual Funds, reflecting diverse investment strategies and ESG criteria. ESG scores exhibit a strong positive correlation with returns, though the effect is not statistically significant. Findings suggest that sustainable investments in India can provide financial competitiveness alongside stability, highlighting the growing relevance of ESG-oriented strategies. The study offers actionable insights for investors, fund managers, and policymakers in emerging markets.
