Impact of ESG Rating of Companies on the Portfolio Performance

Socially responsible investing is becoming more popular among people because are concerned about the environment and society. investors screen company by considering ESG factors. The question raced whether socially improves portfolio performance how funds perform during uncertain times like Covid-19 pandemic. Since many critics of say that funds’ highly depends on Software Service stocks, so relevance companies in fund has been analyzed this research. portfolios have formed using Markowitz mean-variance model, minimum variance studied. Sharpe ratio, result concludes with an abnormally high Ratio 10.8. A similar type was identified ratio will encourage to move towards investing.