Socially Responsible Investment (SRI) Funds are all the rage these days with the green movement flowing strong. Everyone is worried about social responsibility and some are capitalizing on it.
So what exactly is a SRI?
Well, according to investopedia..
An investment that is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in environmental sustainability and alternative energy/clean technology efforts. Socially responsible investments can be made in individual companies or through a socially conscious mutual fund or exchange-traded fund (ETF).
So SRI’s are just stocks or investments in companies that are socially responsible and/or green.
Do SRI’s Deliver Superior Returns?
Not exactly. Read more about Paul Hawken’s Winning Investment Strategy to learn more why SRI’s don’t deliver superior returns and how you can build a more successful portfolio.