What are the ESG funds?

What do you recognize about the ESG funds in India? ESG funds is a comparatively newer concept in India and also to a certain extent around the world. ESG stands for Environmental Social and Governance funds. These funds are like a measuring stick that help the potential and current investors to get a better understanding about the company’s contribution towards the betterment of factors involved in each of these funds. For example, when it comes to dealing with the environment factors, we talking about the company’s position in taking care at the sustainable growth, keeping the environment norms in mind. If it is a factory owned business, then there needs to be an estimate of the emission being generated from the factory, the usage of the resources that are used in order to make the produce and also a detailed account of what happens to the leftover resources later. Are the recycled or reused? If it is a total corporate sector business, then the maintenance of the premise towards creating a better nature experience and so on. Similarly, for the social part of the ESG funds, it is closely scrutinized how happy the employees and the staff that works for the company is, what and how the relationship between the company and the suppliers is and so on. Lastly, as pointed out to be one of the most important factors by the asset management firms is governance. This aspect deals with all the law-abiding activities that are carried out by the business. They see whether the tax and credit score are good, whether or not there are any discrepancies, and everything that is done in the business is done keeping all the lawful rules and regulations in mind, adhering to every rule. For more information, you could ask your wealth or asset management company.

Why is fund management so important?

What is fund management and why is it important that you work on your fund management for yourself and your business (if any)? In simple terms, as the name suggests, fund management is the process of actually managing the present funds that are available to us and working towards making these funds stronger. Which means, fund management is a process of taking into account whatever funds you currently have and working on a plan that is chalked out to get higher returns in near future. It is also important to not forget that fund management is a part of wealth management ultimately. In wealth management, the company or the wealth manager (if operating independently) scrutinizes your entire profile, to gauge the number of assets and the number of liabilities that you have. Along with that they also question you about the goals that you have for your business in future and what the financial goals are. They also figure what you risk taking capabilities are, financially, and then decide where to actually put in the money so that you there is some kind of security maintained along the way. When it comes to fund management, one also needs to understand that it is not a process that will give you the fruits only in a few months. It is something that will take time. The wealth manager ensures that your money is invested in different kinds of assets and funds so that if one of the asset values falls, in one type of asset, then there is no harm done to the other asset type. In fact, it is a huge red flag if your wealth management company does not follow this basic principle. A good wealth manager will have a close eye on the movements of all funds and invest your money in those funds accordingly.

Why are asset management companies important for a business?

 

When it comes to the top asset management companies in India, what is the first thing that comes to your mind regarding what goes on behind the shiny glass doors in their offices? Well, a typical asset management company has a lot of functions to play when it comes to guiding their clients towards achieving their business financial goals. In asset management, the company helps the said business to make a pool of funds and then invest accordingly, in order to gain maximum profits on these returns. A wise asset manager would know that the money which is to be invested should be invested diversely. Which means that the money that the investor is ready to invest can be invested in different kinds of assets (volatile and non-volatile assets). Volatile assets are those assets whose value changes drastically over a few days’ time. These kinds of assets have the power to gain you immense profit in little amount of time and also has chances that it may go down. For this reason, it is important that the asset manager invests the money into stationery assets as well. These assets are those that gain its value over a certain period of time. When it comes to selling these assets, it could fetch you a neat value over certain periods. Some common examples that come in volatile assets or current assets are shares and stocks where are those for fixed assets are property, bonds, and land. In recent years, ESG funds in India have become very popular. These funds let the potential investors of a business know how much dedicated a business is in contributing towards the betterment of the environment, keeping the relationship proper with the employees and suppliers, catering to their needs and also, whether or not they are working while abiding the laws of the government.