Socially Responsible Fund

Socially Responsible Fund A type of mutual fund that is invested solely in companies that are up to a predetermined social standard. In many cases, you will find that a socially responsible fund will avoid making investments in tobacco or alcohol related companies because they do not believe that these companies are ethically sound. In addition, many of these mutual funds are invested in things like care centers, hospitals, and environmentally sound organizations. While the fund will only invest in these types of companies, the boundaries are flexible, since they are self imposed by the investors, rather than through a set of universal rules.