Green Banking And The Promotion Of Mutual Funds: A Study On The Role Of Banks In Aggressive Hybrid Fund Awareness In Visakhapatnam

Abstract

In the era of sustainable finance, green banking has gained momentum as banks integrate environmental, social, and governance (ESG) principles into their operations. A notable extension of this initiative involves the promotion of mutual funds that indirectly support green investments by balancing growth and risk. This study explores the role of Indian banks in promoting such funds under the umbrella of green banking, with a specific focus on customer awareness and investment behavior in Visakhapatnam. A structured questionnaire was administered to 384 banking customers in Visakhapatnam using a descriptive research design and convenience sampling method. Data analysis revealed a moderate-to-high level of awareness regarding green banking and hybrid funds, with environmental concern strongly correlating with the intention to invest. Regression analysis indicated that both awareness and income significantly predict the likelihood of investing in aggressive hybrid funds. Moreover, personalized bank communication channels—particularly relationship managers—were rated most effective in influencing investment decisions. Hypothesis testing confirmed the mediating role of product awareness and demographic effects on communication effectiveness. The study highlights that banks have a strategic opportunity to position themselves as facilitators of green investment through targeted education, digital engagement, and ESG-aligned mutual fund promotion.