ESG FACTORS AND INVESTMENT FUNDS IN NEPAL

Abstract

This study tries to explore the performance of sustainable investment funds in Nepal, with a particular emphasis on the ways in which environmental, social, and governance (ESG) variables impact the perceived of fund performance. The research was conducted utilizing a descriptive and causal comparative research approach, and it included the use of both online and offline questionnaires to collect responses from 384 individuals. These participants included investors, fund managers, and financial analysts. Following portfolio diversity as the most important predictor of perceived fund performance, the data analysis, which includes descriptive statistics, correlation analysis, and regression analysis, finds that governance variables are the most significant predictor of fund performance. Even if they have a smaller influence, environmental and societal elements have a positive impact on how people see funds. The results highlight how important it is to include environmental, social, and governance (ESG) criteria and techniques in order to improve the performance of sustainable funds. The report emphasizes the need for enhancing the incorporation of environmental, social, and governance (ESG) considerations into investment strategies, enhancing financial literacy with relation to ESG principles, and establishing tougher regulatory rules for ESG disclosures. In further study, it is recommended to investigate the long-term performance of these funds as well as the changing attitudes toward ESG aspects held by investors.