Socially Responsible Funds and Market Crises
December 17, 2014
Socially responsible investing (SRI) has seen tremendous growth in the past couple of decades. SRI is about making investments that are consistent with one’s value system. The main three areas of interest are in environment, social, and governance concerns. However, research has shown that SRI investing does not lead to higher returns than traditional investing. In fact, returns tend to be slightly lower. This paper explores the idea that part of the popularity comes from the distribution of returns.