Looking for value-based investing? BSE's new Saatvik Index may have an answer

India's ethical investing landscape received a boost with the launch of the BSE Saatvik 100 Index, a move that could provide value-conscious investors with a formal benchmark rooted in principles of responsible and ethical investing.

Welcoming the development, The Wealth Company Mutual Fund said the newly launched index closely aligns with the philosophy underpinning its Ethical Fund, which was launched with a "Good Karma" investing approach based on the principles of Ahimsa and Saatvik living.

According to the fund house, a review of the BSE Saatvik 100 Index's methodology and constituent profile shows significant similarities with the framework that has guided The Wealth Company Ethical Fund since inception.

The BSE Saatvik 100 Index, introduced by BSE Index Services, aims to create a benchmark for investors seeking exposure to companies that adhere to ethical and value-based principles. Its launch comes amid growing interest in environmental, social and governance (ESG) themes and responsible investing strategies.

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The Wealth Company Ethical Fund excludes businesses associated with alcohol, tobacco, gambling, vulgar entertainment, narcotic substances, leather, meat and poultry, pesticides, insecticides and animal cruelty. These exclusions form the core of the fund's investment philosophy and distinguish it from traditional market-cap-based approaches.

According to the fund house, the sector composition of the BSE Saatvik 100 Index—dominated by financial services, technology, telecom and industrial companies—is broadly in line with the fund's own investment universe.

The company also highlighted that its strategy goes beyond conventional Shariah-based screening by applying a wider ethical framework that combines governance standards, financial prudence and Saatvik principles.

Notably, the presence of financial services companies in the index is viewed positively by the fund house, as its Ethical Fund had consciously built flexibility to invest in select financial services businesses, unlike traditional Shariah benchmarks that often restrict exposure to the sector.

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Commenting on the launch, Madhu Lunawat, Founder, Managing Director and CEO of The Wealth Company Mutual Fund, described the introduction of the BSE Saatvik 100 Index as a "landmark moment" for ethical investing in India.

"When we launched The Wealth Company Ethical Fund, our vision was to create an investment product rooted in the principles of Ahimsa, responsibility and conscious wealth creation. We deliberately adopted exclusions that went beyond traditional market benchmarks because we believed investors should be able to grow wealth without compromising on their values," Lunawat said.

She added that the framework of the BSE Saatvik 100 Index strongly resonates with the philosophy that has guided the fund since day one.

Industry observers say the launch of a dedicated benchmark could help expand India's ethical investing ecosystem by providing investors with a transparent reference point and encouraging the development of more products based on value-driven principles.

For mutual fund investors looking to align wealth creation with personal beliefs and responsible investing practices, the BSE Saatvik 100 Index could mark the beginning of a new chapter in India's evolving investment landscape.

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