This study delves into the multifaceted realm of mutual fund investments, aiming to ascertain associated risks, uncover insights into investment decision dependencies, and examine the correlation between returns from Environmental, Social, and Governance (ESG) mutual funds and Equity mutual funds. Employing a sample dataset comprising prominent funds over the two-year period from April 2021 to March 2023, various tools, including BSE, Money Control, Reserve Bank of India, SEBI, and the Association of Mutual Funds of India, were utilized for data collection. The analysis revealed noteworthy findings, including funds outperforming benchmark returns, those delivering the highest returns, and funds with varying risk profiles. Additionally, the study employed portfolio performance metrics and statistical tests to recommend funds for potential investors. Conclusions emphasize the need for meticulous performance analysis before investing in the dynamic Indian mutual fund landscape. Recommendations advocate for increased investments in specific funds, diversification for risk mitigation, and a nuanced understanding of the risk-return trade off tailored to individual investor preferences. Overall, the research underscores the potential of mutual funds as a flexible and liquid investment option, while acknowledging the inherent unpredictability of future returns. The study found that there is no statistically significant difference in the returns of the ESG and non ESG mutual funds.