SOCIALLY RESPONSIBLE MUTUAL FUNDS
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Mutual funds offer the opportunity to invest in a
wide variety of securities that fit criteria for social
responsibility. The fund managers choose the companies or
government securities they want to invest in. The investor must
then accept or reject the whole fund—choosing only specific
holdings is not allowed.
Investors may not agree with a fund's every
selection. For some, choosing a socially responsible mutual fund
may be a matter of picking the one with the least number of
objectionable holdings. Fund managers vary in the breadth and
strictness of their criteria.
Aside from diversification and professional
management, mutual funds are attractive because they provide a way
to invest small sums of money into large portfolios. Investors can
thus participate in the funding of many different endeavors.
To find funds that call themselves socially
responsible, consult investment periodicals, books on mutual funds,
and books on socially responsible investing. You can also find
advertisements for these funds in magazines that focus on social,
political, and environmental issues.
We close our look at the socially responsible
investment strategy on the next screen.