Vol. 7, Issue 1, Part B (2025)

The perceptions of Environmental, Social, and Governance (ESG) fund, its quality and their impact on the decisions of investors are thoroughly examined in this review paper. The sustainable investments have gained the momentum over the traditional financial metrics, and this has led to insufficient metrics in traditional reporting system when they focus on assessing the sustainability and ethical value of investments. In this review paper 41 literatures (2016 -2024) has analysed the role of ESG strategies in aligning the investors perception.
From the findings of the research a strong investor preference has been identified which supports in enhancing ESG Performance. These strategies deliver a higher financial return in the future, sustainable quality, and also the overall quality of fund. There is also a critical interplay among the financial goals and sustainability goals signifying the importance of transparent ESG reporting to reduce greenwashing risks and enhance investor trust.
The fund managers, policymakers, and investors, advocating for robust communication are the benefiters of this study with actionable insights to improve their fund credibility and foster an effective sustainable investment market. Additionally, the review also identifies the research gaps, particularly in understanding the long term financial outcomes and ESG strategies on investors. By addressing these gaps in future research, it will enhance the development of a more sustainable investor market and credible investment landscape.