What are socially responsible funds?

Socially responsible funds are investment vehicles designed to generate returns while also aligning with specific social and environmental values. These funds evaluate potential investments not only based on traditional financial metrics—such as profitability and market performance—but also on criteria related to sustainability and social responsibility. This dual focus allows investors to support companies that exhibit ethical behavior, promote environmental sustainability, and foster social equity.

The integration of social and environmental criteria into investment decisions is what distinguishes socially responsible funds from conventional ones. By considering these factors, these funds encourage businesses to adopt sustainable practices and contribute to positive social change while still aiming for financial performance. As a result, they appeal to a growing segment of investors who wish to make a positive impact with their investments while still pursuing economic returns.