Socially Responsible Investment Funds: Fees and Expenses

Socially responsible investment funds can provide you with a way to diversify your portfolio and make a difference in society. If you are going to invest in this type of security, you want to make sure that you consider the fees and expenses. Here are a few things to consider about fees and expenses for this type of investment.

Expense Ratio

One of the expenses that you are going to find with a socially responsible investment fund is the expense ratio. The expense ratio deals with the annual costs that are incurred when running the fund. The fund is going to pass these costs on to the investors. You will have to pay for the administration of the fund as well as the salaries of the fund managers. When comparing socially responsible investment funds, make sure that you consider the impact of the expense ratio.

Sales Charges

You will also need to be aware of sales charges when it comes to purchasing this type of fund. Some funds are going to charge you a certain percentage of money whenever you make your purchase while others will charge you whenever you sell your shares. Make sure you understand how these fees work so that you can minimize their impact.

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