Socially Responsible Mutual Funds – 5 Expert Tips if You Are Thinking of Investing in Green Mutual Funds

1) It is important to be clear on 2 things if you want to find the best socially responsible mutual funds: your priorities and your motives. Are you more focused to “green investing” or on making money? If it is the latter, then this widens your scope of prospective funds. Then you can just compare all the green mutual funds and find the best ones by looking at the fund’s prospectus. It is quite easy to find the fund’s top holdings.

2) If money is not your main objective and you truly want to supports specific industries like wind power or solar energy, then an ETF focused in these particular industries is probably your best bet. You could also consider directly investing in the companies you would like to support. However, ETF’s probably remain a better choice, since they are more transparent, which leaves the fund manager with less discretion.

3) In general, when you are considering investing in socially responsible mutual funds, you should consider the company’s investing record, as well as the environmental and social causes the company supports. Green mutual funds managers have the privilege to vote on issues important to stakeholders. You should learn whether their voting record and their portfolio reflects their social and environmental concerns.
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The information supplied in this article is not to be considered as medical advice and is for educational purposes only.