Socially Responsible Investing: a Growing Part of the Investment Industry (1/2)

More and more people are considering the social and environmental results of their investments. Socially responsible investing has become a fast-growing part of the investment industry. Over 2 trillion dollars are invested using socially responsible methods. This is about nine percent of all money invested under professional management.

One way to invest is through mutual " class="hjdict" word="mutual " target=_blank>mutual funds. A mutual fund gathers money from many investors to buy different securities. Mutual fund supervisors can use socially responsible methods to choose which investments they will buy. The funds' supervisors may buy only stocks of companies that meet the requirements set out by the fund. This process is called screening.

For example, a fund could invest only in companies that take measures to protect the environment. The most commonly screened stocks are related to companies that make cigarettes.

The Social Investment Forum in its 2005 report said separate accounts use socially responsible screening the most. These are accounts that are privately managed for individuals or organizations.