By Admin 
Share Market News: Now the trend of investing in India’s stock market is increasing not only to earn money but also according to one’s thoughts and principles. Recently BSE Index Services has launched Satvik 100 Index, but even before this there are two other types of themed indices present in India. One of these is ESG index and the other is Sharia index. The work of all three seems to be the same i.e. to filter companies on the basis of some ideology but the method of all three is completely different.
Which companies are included in Satvik 100 Index?
The BSE Satvik 100 Index selects those companies from the BSE 500 that follow Satvik principles. A total of 100 companies are included in this. According to a fund house named Wealth Company, companies related to alcohol, tobacco, gambling, pornographic entertainment, narcotics, leather, meat, poultry, pesticides and animal cruelty are kept out of such scrutiny.
HDFC Bank is included in this index with the highest share, followed by ICICI Bank and Reliance Industries, that is, banks and finance companies have not been kept out of this index.
Mutual Fund: Start investing with just Rs 100, withdraw money whenever you want, option of Zerodha Mutual Fund will be available directly on Swiggy
Banks have no place in Sharia index
NSE’s Nifty Shariah 25 index selects companies according to Islamic rules. Its biggest thing is that it does not include companies that give or take money on interest, hence companies like banks and NBFCs are almost not included in this index. Apart from this, companies related to liquor, gambling and pork are also not included in it.
Nifty Shariah 25 includes companies like Hindustan Unilever, TCS, UltraTech Cement, HCL Technologies. Here every month it is checked whether the company is still following the rules or not and the entire list is reviewed twice a year.
The method of ESG index is different from all others.
The BSE 100 ESG index does not run on the principles of any religion or morality, rather it is based on the score of three things: how much the company cares for the environment, how it treats the society and how clean the company’s functioning is.
In this, those companies of BSE 100 whose score is more than a certain limit are kept. This score is given by a separate agency, which decides by looking at the company’s attitude towards the environment, treatment of employees and functioning of the board. Here, no one type of business is directly excluded, rather the decision is taken after looking at the score of each company.
Now the government will make petrol and diesel cheaper! Crude oil prices fell from $120 to $76, Hormuz removed inflation tension
What is the basic difference between the three?
The biggest difference is that Satvik Index selects companies on the basis of food and ethics related issues. The Shariah index selects based on the rules of Islamic money, which completely excludes interest-bearing businesses, and the ESG index is based on a company’s environmental and governance scores. For this reason, a company like HDFC Bank is at the top in Satvik 100, but banks have no place in the Shariah index.
Fund houses can use all three indices as benchmarks for their ETFs, index funds and other schemes.
What does it mean for investors?
If an investor wants to invest money not only for returns but also according to his thinking, then now he has three options. Satvik 100 is for those people who give importance to things related to food, drink and morality.
The Shariah index is for those who want to follow the rules of Islamic money and the ESG index is for those who give more importance to the company’s environmental and corporate responsibility.
However, there is currently no direct fund or ETF available on Satvik 100, so investors will have to wait to invest money directly in it.