Socially Responsible Investing There are two questions that we commonly are asked about socially responsible investing... My Friend the Environmentally Responsible Investor... A friend of mine walked into a large, well-known, financial firm’s office in Ann Arbor, Michigan, and she inquired about how they could help her with environmentally responsible investing.  To her dismay, she was told that they could assist her in purchasing one socially responsible mutual fund that they recommend.  She was not given other alternatives, and was in-fact led to believe that this was the only option they had available to her, even though it was not the environmentally responsible type of investment she was looking for.  This type of situation has pushed us to seek access to as many SRI funds as we are able to.  There are currently over 400 recognized SRI funds. Looking At Comparisons...  One of the most common questions regarding SRI funds is whether investment performance is hampered by the constraints placed on the fund manager.  As a quantitatively focused firm, we believe that the best way to answer this question is to look at the numbers.  When we do analyses on SRI funds, we compare the performance to the S&P 500, and we find that the performance results significantly vary from fund to fund, commonly due to the SRI cause that is being pursued.  To make a general comparison of SRI funds to non-SRI funds, it is possible to compare the KLD 400 Social Index to the S&P 500 and see that the performance has been similar, although past performance does not always guarantee future results.   How Many Socially Responsible Investments Are There? .        What About Overall  Investment Performance? Back