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Responsible Investing (SRI)? | |
Get Started | |
Ann B. Alexander | |
& Articles | |
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Me |
| Vacation by Ebeth Scott-Sinclair http://ebethscottsinclair.com |
| FAQs (Frequently Asked Questions) |
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Is socially responsible investing a fringe element of the investment world? Not at all. In fact, by 2007, more than 1 out of every 10 dollars in assets identified in professionally managed portfolios ($2.29 trillion) were using one or more SRI strategies. In addition, there were only 55 socially screened mutual funds in 1995; by 2005, there were over 200. Do you sacrifice performance when you choose socially responsible investments? No. Socially minded investors do not have to give up returns when they choose to align their investments with their values. Academic studies show that the important variable in investments is the quality of the fund manager not whether it is an SRI fund or not. The Domini Social Index (DSI) is a market index of 400 securities screened according to social and environmental criteria. Much like the S&P 500 (which is DSI’s unscreened equivalent), the DSI is designed to represent the market’s performance at any given time. Since 1990, when it was conceived, the DSI has outperformed the S&P 500 over a ten year period. For more information about how the Domini Social Index has compared to Standard and Poor's go to click here. How do SRI mutual funds perform? Every year, many SRI mutual funds are listed as top performers by the Morningstar rating service. Reputable SRI portfolio managers consistently produce comparable returns to traditional money managers. How much money do I need to participate in Socially Responsible Investing? No particular amount is needed. The variety of opportunities and approaches are growing every day. There are many options for aligning your portfolio with socially & environmentally responsive investing. I can help you learn how you can participate on your own by voting your own proxies (shareholder advocacy), community investing, using website screening tools, etc. If you’d rather have professionals help you, I can introduce you to the appropriate SRI investment professionals. I can also give you tips on how to work with your present investment professionals to broaden their view of your investment approach. Can you invest my money for me? No…I don’t manage money, give financial advice, or sell products. This is the role of an investment advisor. My job is to educate you about what is available in the SRI arena and connect you with those firms or individuals who are doing it successfully and honestly. |