• Sudhanshu Yadav
  • Rachna Jawa Associate Professor, Department of Commerce, Shri Ram College of Commerce, University of Delhi, Delhi-110007, India
  • Kishwar Zamani Ph.D. Scholar at Department of Commerce, University of Delhi, Delhi-110007, India



Sustainable Investment, Conventional Investment, Indian Stock Market, India ESG Index, Portfolio Management, Social Screening


Abstract: Purpose: The study seeks to evaluate the sustainable investment performance from the Indian stock market. Then compares it with the performance of conventional investment during five different Covid phases; Pre-Covid-19 Phase, Complete Lockdown, Partial Lockdown, Complete Unlock with Restrictions, and Post Vaccination.

Design/methodology/approach: The study measures the portfolio’s performance through Sharpe Ratio, excess Standard Deviation Adjusted Returns (eSDAR), Fama Decomposition Model, CAPM, and other Regression Models with Dummy variables.

Findings: The study reveals that sustainable portfolios significantly underperform their conventional peers for the whole sample period. However, phase-wise outcomes show that during the ‘pre-Covid-19’ phase, sustainable portfolios are underperforming their conventional counterpart significantly, but this underperformance disappears during the following Covid phases. Finally, underperformance recurs during the ‘post vaccination phase’, but it is not significant.

Practical Implications: Similar performance of sustainable investment during Covid phases and afterward shows the royalty of sustainable investors towards socially sustainable companies. Individual investors, policymakers, and portfolio managers can use the findings of this study to play an active role by making demand for sustainable investment to put pressure on the corporate house to be sustainable.

Limitations: The scope of this study is limited to passive investment, i.e., index listed on Bombay Stock Exchange with the single-factor model. However, future studies may perform a cross-country analysis using the multi-factor model taking active sustainable financial instruments to see the impact of Covid-19 on their performance with a larger span of the study period as Covid-19 is still an ongoing pandemic.  

Originality/value: The overall findings suggest that during market shocks, because of stringent actions taken by the government, investors can fulfil their Expressive(values) and Emotional (virtuous feeling) benefits above practical benefits from their investment.


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How to Cite

Yadav, S., Jawa, R., & Zamani, K. (2022). SUSTAINABLE INVESTMENT VERSUS CONVENTIONAL INVESTMENT: A STUDY FROM INDIAN STOCK MARKET DURING COVID-19 PANDEMIC. International Journal of Engineering Technologies and Management Research, 9(4), 63–77.