ESG Fund
Definition
What is ESG Fund?
A fund that incorporates environmental, social, and governance factors into investmentAn asset or commitment of money made with the expectation of future income, growth, or both. selection or stewardshipThe responsible oversight of invested assets, including monitoring companies and exercising ownership rights..
Example in practice
How This Looks in Practice
An ESG fund may favour companies with stronger emissions management and board oversight.
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Related Terms
Money Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.
Fund TypesEquity Fund
A fund that invests primarily in shares and seeks long-term capital growth.
Fund TypesFixed Income Fund
A fund focused on income-producing debt securities such as government and corporate bonds.
Investment MethodsLump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.