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Discuss the following question: Why should we expect that the performance of socially responsible funds differs...

Discuss the following question: Why should we expect that the performance of socially responsible funds differs from that of conventional funds?

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Answer #1

Socially responsible fund will always be having a different performance than that from a normal fund because socially responsible fund will never be investing into those companies who are making such products which will be killing the basic essential of ethos which are incorporated in society like they will not be investing into the alcohol companies, or those companies which are employing child labour.

the performance of socially responsible fund will be a bit lower in comparison to the normal companies fund, because they will have a very low amount of companies to invest into, whereas normal companies fund will have a larger number of companies, to invest into, and they will be investing in the investment principles, rather than they will just the following at some social norms.

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