The Socially Responsible Mutual Fund

The socially responsible mutual fund is a type of investment that adheres to certain social criteria. It aims to bring investors a return, but at the same time, it has standards to abide by. Here are the basics of the socially responsible mutual fund and what it means to you as an investor.

Socially Responsible Mutual Funds

The socially responsible mutual fund still adheres to the basic principles of a mutual fund. They still pool resources of investors together and use those resources to make investments on their behalf. Their ultimate objective is to bring in a steady return for the investors. However, in addition to this main objective they weigh their actions and make sure that they are socially responsible. They only invest in companies and investments that fit they are social criteria. There are many different socially responsible mutual funds available with different investment criteria to choose from. As an investor, you can therefore align your personal beliefs with your investment portfolio.

Many people believe that it is necessary to use unethical means in order to gain in their portfolio. However, as the socially responsible mutual fund has proven, you can still be ethical and make a nice return on your investment.

Environmental Concerns

One of the fastest growing socially responsible mutual funds is the type of fund that focuses on companies that are green friendly. The environment is a hot topic among many circles. Therefore, there is a growing number of investors that are concerned with how it is treated. If you invest in this type of fund you can rest assured that your dollars will not be used to hurt the environment. The companies that make up this type of fund have shown that they are willing to go the extra mile to protect the environment, if necessary. This could mean that the company uses alternate forms of energy, promotes recycling or helps the environment in some other way. As an investor, you will be able to net a return on your investment and help protect the environment at the same time.

Religious Beliefs

Another popular type of socially responsible mutual fund are those that focus on religious beliefs. Many investors have strong religious beliefs and wish to incorporate them into their investment portfolio. While they want a return on investments, they do not want to do it by giving money to companies that act contradictory to their beliefs. These funds invest in companies that share religious ideals with the investors.

Human Rights

Another emphasis for this type of fund is the type of mutual fund that only invest in companies that believe in human rights. Many companies, do not tend to treat all their employees equally. For example, we have all heard of the sweatshops in Third World countries that are filled with children or pay a very low wage. When investing in this type of mutual fund, you can be sure that the fund will not be made up of those companies.

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