Understanding Socially Responsible Investing (SRI) Fund Categories

When you are investing in socially responsible investment funds, there are a number of different categories of funds that you could invest in. Here are some of these socially responsible investment fund categories.

Growth Fund

This type of fund typically uses growth stocks in order to make up the portfolio. With this type of fund, you are striving only for growth in your portfolio. This type of fund is strictly for those that want to invest over the long term. If you try to get in and out quickly, there is a good chance that you will lose your investment.

Bond Fund

Another type of socially responsible investment fund is the bond fund. This is a mutual fund that invests in corporate and government bonds. With this type of bond fund, you are trying to create a regular source of income for yourself with the interest payments.

Balanced Fund

Another example of a socially responsible investment fund is a balanced fund. A balanced fund is a type of fund that holds a combination of stocks and bonds. With this type of investment strategy, the aim is to have some growth and a regular source of income through bond interest payments.