Socially Responsible Investing

If you’re looking for socially responsible index funds (SRI) to invest in I've made a relatable Core Four Portfolio through Parnassus Investments group’s index funds:

PRFIX (Bond)
PRBLX (Large cap)
PGINX (International)
PARMX (Small cap)

Though there is a BIG difference in using this portfolio. Investing in SRIs comes with higher fees, which we know from The Secret to Investing is a red alarm in purchasing stocks.  Most of the SRIs I saw come with a fee of 2% or more, which will add up to hundreds of thousands of dollars over a decade or two lost to those fees! 

If you are considering this route, the question you should ask and answer for yourself is this:

Is it better to support the causes I believe in by not investing in an index fund that will provide a portion of my money to socially irresponsible companies? Or is it better to support the causes I believe in by using the greater wealth made by those index funds to give the money, time, and energy saved back to my local, favorite causes?

I believe the latter. Here's why

If you want to do your own research here’s a list of most SRIs. (Remember to subtract the 2 fee-columns, expense ratio and management fee, to find each funds true past returns!) 

Also here’s two other socially responsible investment management companies to look into: Calvert Management Group and PAX World. And if you’re interested in Vanguard’s policies around social concerns and their general investing here’s a statement on their site about just that. VTFSX is their SRI which is a comparable fund to VTSMX.


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