Investing Strategies of Socially Responsible Investment Funds

Socially responsible investment funds can provide you with a number of different investment strategies for your portfolio. Here are some of the most popular investing strategies of socially responsible investment funds.

Growth

Many funds utilize a growth strategy for their portfolio. With this method, they attempt to identify stocks that are poised to go through rapid amounts of growth in the future.

Value

Another approach that these funds will use is a value investing strategy. With this method, they try to identify companies that are undervalued in the market place and then by their stock. At that point, they will be able to realize a profit when the stock starts trading at the correct price.

Blend

A socially responsible investment fund might use a blend investment strategy also. This strategy utilizes a mixture of value and growth stocks in the same fund.

Market Cap Investing

Many socially responsible investment funds are also going to create a portfolio of a certain class of companies within a market capitalization range. They might choose to invest in large cap companies, mid-cap companies, or small-cap companies. All of these types of companies provide the fund some unique benefits. For example, with a small-cap fund, you could realize superior growth because the companies have a huge opportunity to expand. 

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