What is a Socially Responsible Investment (SRI)?
Socially responsible investment (SRI) is an investment strategy that seeks both financial return and social good.
How Does a Socially Responsible Investment (SRI) Work?
Investment strategies are usually focused on returns on investment, seeking to maximize the profits for the investor. In pursuing a profit-driven strategy, investors seek the highest returns, irrespective of what the company does. Some investors weigh the social costs of their investments along with profits. issues, such as environment, consumer protection, human rights, fair trade and diversity, are important guides for socially responsible investors.
Socially responsible investment also includes investments by pension funds in projects that are important to their members. For example, an SRI for a union pension fund might include projects that only invest in union-built projects or in companies with fair labor practices. SRIs also comprise a growing niche among community banks, including certified community development financial institutions (CDFI), taking local deposits and making local loans.
SRIs have become popular for mutual fund managers, growing from niche funds for many investors to become a predominate investment vehicle for education and retirement funds.
Why Does a Socially Responsible Investment (SRI) Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Perhaps no other man in the history of economics enjoys the rock-star status ...Read More →
Buying life insurance is daunting enough. No one wants to think about when they'll die and how their loved ones will continue without them -- financially and otherwise. ...Read More →
George Soros may have made a billion dollars short-selling the pound sterling (earning him the title of "The Man Who Broke the Bank of England"), but what he really wanted to be was a philosopher...Read More →