There seems to be a moving trend to make a conscious effort to do a bit of goodness, even in the financial markets of the world. If this sounds confusing, you may want to look into socially responsible investments or SRI that are now being actively promoted by business entities all over. SRI is one of the many forms of investment strategies that aims to maximize financial returns (profits), while performing an act of social goodness at the same time. Often, people who practice such an investment strategy favor corporate practices with dealings regarding children’s welfare, consumer protection, and environmentalism, to name a few. Or, in regards to a few business entities, SRI simply means not investing in “unethical” overtures, totally shunning companies involved in abortion, alcohol, gambling, (anything to do with the) military industry, tobacco and weapons.
Incredibly, SRI is proving to be one of the most profitable financial strategies in the present times. SRI is even acquiring more takers by the minute, and not just in the United States – but also in Europe and some parts of Asia. One very specific example of a profitable SRI would be investing in socially responsible mutual funds.
Prominent Example Of Socially Responsible Mutual Fund
Socially responsible mutual funds are really professionally managed investment firms who collect from a number of their investors a certain amount of monetary backing; which, is consequently used to buy bonds, securities, short term money market instruments and stocks. However, one of its primary intentions is to promote more socially relevant issues and practices.
The Pax World Funds is the first ever recognized socially responsible mutual fund in the US. It was created in 1971 by two Methodists named: Rev. Dr. Luther Tyson and Rev. Dr. Jack Corbett. The Funds, as it is called, was established simply because its founding members wanted to establish am investment firm that would not give financial aid to the then raging Vietnam-America War. As of late, The Funds has branched out to four different but equally profitable mutual funds. There is the balanced fund, the growth fund, the high yield fund, and the money market fund.
The present Pax World Funds has maintained its original intentions of advancing equality and promoting peace. But it has also taken great strides in helping protect the environment and fostering a sustainable global development. The Funds has also begun investing in small companies and micro-entrepreneurs in the US that shows the promise of ethical financial practices and ecologically friendly processes.
SRI Is Different From MRI
It may be easy enough to confuse, but market analysts are pointing out that there is a great difference between socially responsible investment (SRI) and morally responsible investment (MRI.) Although their purposes to promote environmentalism and safe work conduct may run on the same ground, SRI do not care to make stands against social issues like pornography or teen pregnancies (which is what a number of MRIs do.)
For example, the Ave Maria Mutual Funds is also a mutual fund family that invests in socially responsible overtures. Only this time, the Ave Maria Mutual Funds’ primary concern is to invest in companies that do not violate certain Roman Catholic religious principles. Some people call this type of investment firm as faith-based or faith-driven investment.
