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The Best Socially Responsible Funds

Post on: 5 Май, 2015 No Comment

Is it possible to make the big bucks and sleep at night at the same time? This blog explores ethical and sustainable investment alternatives that are making competitive returns.

The Best Socially Responsible Funds

Listed below are standout SRI funds that I feel are well positioned to gain from the current economic environment. These mutual funds and ETFs are grouped into different categories that reflect their holdings, strategy, and geographic region. I also include categories that are unique to responsible investing such as environmental activism, humanitarianism, community development, and alternative energy. With over $2.71 trillion is assets subject to social criteria and over 260 socially monitored funds, it can be difficult to navigate all the options out there.

Ive picked the following funds based on a number of fundamental criteria such as management track record, MPT statistics, and industry outlook. However, the niche nature of each SRI sub-categories must be taken with a grain of salt due to the lack of competition. The youthful nature of many funds in this sector also hiders forecasting.

An important litmus test for any alternative fund requires determining if management has jumped on the green bandwagon for short-run gain. Unfortunately, this last quarter has seen a number of self proclaimed SRI funds mislead investors. To ensure these imitation funds dont show up on my list, Ive dug into each funds holdings to confirm consistency with the fund strategy. Ultimately, Im looking for funds that demonstrate a long-run commitment to well articulated objectives that are consistent with socially responsible investing.

These top picks are not a static snapshot of the current SRI industry. Rather, it is an evolving list that I hope to refine over time. I welcome suggestions and recommendations.

Alternative Energy/ Resource