Have you heard about socially conscious investing? Socially conscious investing basically means that you or the mutual funds that you use will not invest in companies that do not promote the social good.
Socially conscious investing takes entire industries like alcohol, gambling, gun manufacturers, potential environmental polluters and the like out of the investing mix of potential companies in the possibilities for your investments.
Several mutual funds have gravitated to this investing style as a way to market and differentiate themselves from the masses of funds that comprise the investing universe.
Socially responsible investing (SRI) mutual funds and socially conscious investing look to limit or restrict their investments in companies that promote what the general public would consider vices.
They shy away from investing in companies that are seen as environmental polluters, makers addictive substances like alcohol or tobacco, and other companies. Many of these mutual funds have also removed themselves from investing in companies that have been seen as having bad corporate governance policies and practices. They have also shunned companies with suspected human rights violations.
Socially Conscious Investing Mutual Funds Have Gained In Popularity
Socially conscious investments and socially conscious investing mutual funds have exploded in popularity in recent years. The number of socially conscious investing mutual funds or socially responsible mutual funds in the United States has grown to over 250 with assets of more than $300 billion as of 2010, this is up 30 fold since their inception in 1995.
According to InvestmentNews.com and Morningstar.com, socially conscious investing mutual funds have had over $3 billion in net inflows into these types of funds in the past three years ending in 2012.