Socially Responsible Investing: Funds vs. Individual Investments

Socially responsible investment funds can provide investors with a number of benefits. Here are a few things to consider about how this type of investment compares to other choices that you have.

Socially Responsible Investment Funds vs Stocks

Socially responsible investment funds are typically made up of underlying securities such as stocks or bonds. A socially responsible investment fund is going to be much more diversified than a single stock. If you invest in a stock, you are putting yourself in a position of risk because that individual company could go out of business. However, with a socially responsible investment fund, you are going to be diversified, and one company's going out of business is not going to hurt you that bad. With stocks, you have more potential for growth than with a fund.

Socially Responsible Investment Funds vs Bonds

A bond is going to provide you with a fairly safe investment. If the company that you are investing in goes out of business, you have a good chance of getting your investment back. However, if you invest in socially responsible investment funds, you can get a regular source of income for yourself, and you will have a professional management team selecting the bonds for you.