Does the total expense ratio affect the net asset value of the ESG Mutual Fund Schemes?

The main aim of this study is to analyze the effect of the total expenses ratio (TER) on the net asset value (NVA) of the Environmental, social, and governance (ESG) mutual fund scheme. In today’s scenario, sustainability brings more attention to the investors, so ESG funds create a good image in the minds of investors. So, this study uses the data of a total of 9 ESG mutual fund schemes that have been studied for the time period from 2020 to 2022. The static panel data method is used to analyze the result by using Python software. It is found that the relationship between TER and NAV is negatively significant. The increase in TER resulting a decrease in NAV or vice versa. This study helps the investor in opting for the appropriate ESG mutual fund schemes for financing. From the technological perspective, the integration of fintech tools like AI and machine learning might help in better cost analysis and precise NAV forecasting in managing TER. This resulting an increase in sustainable financing in the economy. The policy assesses their investment on a sustainable basis.