Investor Inclination Towards ESG Mutual Funds: An Analytical Approach to Wealth Maximization Strategies

This present research study investigates individual investors' preference to invest in Environmental, Social, and Governance (ESG) mutual funds for wealth maximisation. This study investigates investor awareness, investment priority factors and several variables in assessing investors’ inclination towards ESG Mutual Fund schemes in India. This research is guided by five key objectives: evaluating investor awareness and perception; identifying determinants of mutual fund investment; and analysing the influence of environmental, social, and corporate governance (ESG) aspects on investor preferences. Results indicate that investor awareness and perception (H1) about ESG mutual funds are not significantly positive (p > 0.05), suggesting little familiarity and weak attitudinal alignment. Various investment decision criteria, including returns, risk, and market trends, significantly influenced investor behaviour (p < 0.05). Unexpectedly, environmental (H3), social (H4), and governance (H5) aspects did not substantially influence investor preferences (p > 0.05). The study concludes that, the financial safety, high returns, market trends, and regulatory backing are more influential determinants of investor behaviour than ESG-specific values. Future efforts must emphasise education, digital resources, and awareness to enhance ESG fund acceptance in India.