Question

When considering an investment in a mutual fund, would you consider the CSR profiles of the...

When considering an investment in a mutual fund, would you consider the CSR profiles of the companies in which the fund invested? What about SRI funds? Why, or why not?

Homework Answers

Answer #1

When considering investments in a mutual fund, normally one would not look into the CSR profile of the companies in which the fund invests because the main reason for buying a mutual fund is to get good returns on one's investment. Unless the CSR activities of a company somehow impact its shareholder value, one would not look into it.

However, while investing in SRI (Socially Responsible Investing) funds, one would look into the CSR activities because investors in SRI funds usually look for good returns coupled with responsible CSR activities.

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