Research by Baroda BNP Paribas MF shows that ESG indices have delivered higher rolling returns with lower volatility.
Baroda BNP Paribas Mutual Fund on Wednesday launched Baroda BNP Paribas ESG Best-in-Class Strategy Fund, which will be benchmarked to the Nifty 100 ESG Index.
The investment approach will combine ESG ratings (provided by an external SEBI-registered ESG Ratings Provider) with in-depth fundamental analysis and ESG research to identify high-quality investment opportunities, the fund house said in a statement.
This will enable investors to align long-term wealth creation, while getting exposure to companies with strong ESG performance.
Historical data support this approach, as over the past decade, the Nifty 100 ESG Total Return Index has annually outperformed the Nifty 100 TRI in seven of the last 10 years, the statement added. Research by Baroda BNP Paribas MF also shows that ESG indices have delivered higher rolling returns with lower volatility, with the volatility of the benchmark Nifty 100 ESG Index lower than the Nifty 100 Index for about 85 per cent of the market days over the past two years.
“Investors in India are increasingly welcoming thematic strategies, particularly those rooted in sustainability, as we have seen over the last few years. The growing appetite for ESG-aligned solutions reflects a broader shift toward long‑term, purpose-driven investing. This trend underscores how investors are not only seeking competitive returns but also looking to participate in themes that shape a more resilient future,” said Sanjay Grover, CEO, Baroda BNP Paribas Asset Management (India).
Published on February 18, 2026
