Determinants of Investment Behaviour of Investors towards Environmental, Social, Governance (ESG) Funds in India

Due to investors' growing awareness of sustainability and ethical issues, environmental, social, and governance, or ESG, investment has been increasingly popular in recent years. By examining elements including expectations for financial performance, risk perception, ethical orientation, regulatory influence, and social awareness, this study investigates the major factors influencing investor behavior toward ESG funds. The study finds that demographic characteristics including age, income, and education also significantly influence investing preferences using a combination of qualitative and quantitative research methodologies. Furthermore, important factors influencing investment decisions include perceived trade-offs between sustainability and profits, business transparency, and confidence in ESG ratings. The results offer guidance to fund managers, financial institutions, and legislators on how to create plans that boost investor trust in ESG funds and, eventually, encourage sustainable investing methods.