Why Socially Responsible Mutual Funds Can Still Bring Profit And Diversity

Socially responsible mutual funds can give you the satisfaction of knowing that your money is well taken care of in a safe and diversified investment, while at the same time knowing that you are contributing to an improvement in our society, and not to the reverse. The mutual fund has been a popular form of investment for decades, especially among those coming into the market for the first time. There is security in diversification, and also in knowing that the investment choices are being made by qualified professionals with years of experience within the industry.

These have been the big selling points for mutual funds, along with the fact that they are a government regulated investment with added protection. You can also buy into investments which would normally be beyond your scope, due to reasons of size. By pooling forces with other investors, you can make this happen. This can include investments in companies which are protecting the environment for future generations, or which are actively involved in promoting fair commerce within developing countries. If you find the right investment, you will no longer need to spend hours searching for your own ethical companies to invest in.

Mutual funds inevitably come with some drawbacks, and these may affect your choice as to whether or not to invest in any one specific fund. When you choose a managed investment, you are inevitably going to sacrifice some of your ability to make independent choices. In the case of mutual funds, you lose the ability to choose your own companies, and when you enter and exit your investment positions. If you are looking to invest ethically, you will need to find an investment manager with whom you have a philosophical rapport, or you will need to get out and plan your own investments.

You can take the concept of a socially responsible mutual fund even further by choosing to invest in certain countries and not others. Mutual funds offer the easiest way to diversify your profits internationally without the need for language skills or overseas visits. You can choose the countries whose policies are in line with your own, or the companies within a certain country who are engaged in work you believe to be critically important.

These socially responsible mutual funds will still need to be able to offer the benefits of safety, diversification, and potential profit. There is no point putting money into a poor investment, just because of the moral considerations of some of the companies which are involved. If you are going to lose money, you may as well give it to charity in the first place. Make sure the potential for profitability is there by choosing market sectors which have the potential for above average gain, and you will get so much more satisfaction from your socially responsible mutual funds.

 

stock market trading

 

Top Daily Stock Market Advisory - Click Here

 

 

No Load Mutual Funds News:

 

SIPs in mutual fund and how to best utilise them - mydigitalfc.com

SIPs in mutual fund and how to best utilise them
mydigitalfc.com
By Arnav Pandya Feb 02 2012 There are different ways in which a systematic investment plan (SIP) can be implemented. However, the investors are often in a confused state due to the different methods used by various fund houses for processing SIP.

..


Symform Secures $2 Million In Series A Round Of Funding
Waltham: Seattle based cloud storage vendor Symform has secured $2 million in their series A round of funding from Westfield Capital and existing investors OVP Venture Partners and Longworth Venture Partners. With the new round of investment, the total of series A comes to $7.5 million...


Use the current market situation to clean your portfolio, says Tata MF's . - Businessworld

Use the current market situation to clean your portfolio, says Tata MF's .
Businessworld
Equity has been a key component of Bhupinder Sethi's investment and he continues to invest through the systematic investment plan (SIP) in his own managed funds. Talking to Businessworld, the head of equities at Tata Mutual Fund feels the markets can .

..


At least 1.66 mn SIP accounts closed in 2011 - Livemint

At least 1.66 mn SIP accounts closed in 2011
Livemint
India's `6.81 trillion mutual fund industry is losing its most trusted source of equity inflowsEURsystematic investment plans (SIPs). The latest data from registrar firms Computer Age Management Services Pvt. Ltd (CAMS) and Karvy Computershare Pvt. Ltd .

and more »
..


Entry load or not, most foreign funds got it wrong
EURWhen a fund house like Fidelity exits, it does not augur well for the Indian mutual fund industry,EUR says the chief executive officer of a leading fund house. But, he is quick to add, exits of large and well-known foreign fund houses from India are common...


Use mutual funds to build a successful pension plan - Economic Times

Use mutual funds to build a successful pension plan
Economic Times
All you need to do is set up SIPs in different types of funds based on your desired asset allocation. A young investor with an aggressive risk appetite can invest in a clutch of diversified equity funds to save for his golden years. As he grows older, .

and more »
..


IRFC Hudco tax-free bonds - Moneylife Personal Finance site and .
A few months ago Reliance and Birla Mutual Funds were pushing hard a combo plan of mutual fund and insurance. One investor is now caught in a bind having fallen for Reliance's pitch. Don't expect SEBI to do anything ...


Sebi tightens valuation norms for liquid funds
The Securities and Exchange Board of India (Sebi) said on Saturday it was tightening the valuation norms for liquid funds...


Pramerica MF To Acquire 39% Stake In Prudent Advisory - DealCurry

Pramerica MF To Acquire 39% Stake In Prudent Advisory
DealCurry
By : Charmi Gutka | 21 February 2012 Pramerica Mutual Fund is planning to acquire 39% stake in Prudent Corporate Advisory Services Limited for R20Cr. The deal will help Pramerica, who was planning to start its PMS segment to get clients from Prudent's .

and more »
..


 

mutual funds

 

Daily Stock Barometer - Click Here

 

It may not always be the case but you should assume the links on this website are affiliate links which means that we will be compensated if you choose to buy at some point in the near future. Please accept our thanks for your support.