📄 Abstract
The study compares ESG-based investment portfolios with traditional equity portfolios in the Indian automobile sector. In recent years, investors have started paying attention not only to profits but also to how companies manage environmental, social, and governance (ESG) practices. The main purpose of this research is to find out whether ESG investments can provide better returns, lower risk, and more stable performance compared to traditional investments. The study examines eight major automobile companies using data collected from sources such as NSE, Money control, company annual reports, and ESG rating agencies for the period 2020–2026. Different statistical methods, including descriptive statistics, correlation, regression, ANOVA, and ADF tests, were used to analyse the performance of the portfolios. The results show that ESG portfolios earned slightly better returns while carrying almost the same level of risk as traditional portfolios. Companies with stronger ESG practices also showed better stability during market fluctuations. The study concludes that ESG investing is gradually becoming a reliable long-term investment option in India. Growing investor awareness, government regulations, and digital platforms like Angel One are further encouraging responsible and sustainable investing practices.
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📚 How to Cite:
Rajashekar Reddy Katakam, , Dr. K. V. Geetha Devi , RISK-RETURN DYNAMICS AND PERFORMANCE EVALUATION OF ESG BASED INVESTMENT PORTFOLIOS IN COMPARISON WITH TRADITIONAL EQUITY PORTFOLIOS IN INDIA , Volume 13 , Issue 6, June 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 17 - 23 ,