How to Invest in Socially Responcible Mutual Funds

Investing in socially responsible mutual funds is a way for many people to use their money to improve society and support their beliefs. At the same time, these investors hope to achieve a good financial return. This article will guide help you invest in socially responsible mutual funds. You, too, can use your money for the power of good!

Difficulty: Moderate

Instructions

1. Decide what issues or beliefs are important to you that you want to support financially. Some socially responsible mutual funds will avoid companies that make tobacco or military weapons. Other funds will invest in companies that help save the environment. Find a fund that matches your beliefs.

2. Research socially responsible mutual funds. Look through the different prospectuses of each fund to see what they invest in and their track record.

3. Pick a investment strategy. Each socially responsible mutual fund will have a different objective such as growth or income. Find ones that suit your investment goals.

4. Open an online brokerage account. You can invest in socially responsible mutual funds through an online broker. There are many to choose from with low commissions.

5. Consider using your retirement funds to invest in socially responsible mutual funds. You can open an IRA through many funds and support causes you believe in while saving for your retirement.

Tips & Warnings

• Diversify your investments among different funds to reduce your risk.
• Be careful not to sacrifice financial returns to invest in socially responsible mutual funds. If the returns of these funds are poor, you may be better off investing in a non socially responsible fund and donating the returns to a cause you want to support.

[etmarciniec]

on 5/4/2009 Thanks. I found this useful.