Resources for Socially Responsible Funds

Socially responsible investing (SRI) appeals to both individuals and companies. As a business owner, you might want to include socially responsible mutual funds as an option in your employee retirement plan. The investment company that handles your personal or corporate investments can recommend any number of top performing socially responsible funds.

Most socially responsible funds avoid investing in companies that deal in gambling, alcohol and tobacco. Funds managed by religious groups also tend to avoid companies whose activities conflict with the group's moral beliefs. What you'll find is that socially responsible investing means choosing to support businesses whose products or practices make positive contributions to society.

1. Green energy companies working towards eco-friendly solutions.

2. Companies who promote workplace diversity--a favorite of socially responsible investment funds.

3. Companies who work to minimize their environmental impact.

4. Businesses who promote quality, safe products appeal to socially responsible funds.

Seek out the best of the socially responsible mutual funds

Hundreds of mutual funds promote socially responsible investing. You should compare funds carefully and ask your investment advisor for advice before choosing one. The point of SRI is to contribute to the social good while also maximizing your returns.

Compare funds online to find one that suits your idea of socially responsible investing

If you want to invest in a particular type of product, green energy for example, or you want to avoid certain types of companies, such as those that do animal testing, then use online investment research tools to locate a fund that reflects your values.

Invest in socially responsible hedge funds if you need a large investment vehicle

Hedge funds are similar to mutual funds in that they pool the funds of multiple investors. However, unlike mutual funds, hedge funds are not regulated, are only open to accredited investors, and don't advertise their products. Socially responsible hedge funds are for the multi-million dollar investor looking for a private investment fund with high yields. Hedge funds can be risky, so make sure you've done your homework before investing.

• If you belong to a church or volunteer with any socially conscious organizations, ask about possible investment opportunities. Many religious and charitable groups promote social responsibility investing.