Investing in ethical funds has gained popularity in recent years as more and more investors seek to make a positive impact with their money. Ethical investment funds, also known as socially responsible investment (SRI) funds, aim to generate returns while also adhering to ethical principles. These funds invest in companies that are environmentally friendly, socially responsible, or ethical in their business practices. If you are looking to align your investments with your values, here are some of the best ethical investment funds to consider in 2021.
1. Calvert Equity Fund (CSIEX)
The Calvert Equity Fund is one of the oldest socially responsible mutual funds in the United States. It focuses on investing in companies that are leaders in ESG (environmental, social, and governance) practices. The fund has a strong track record of outperforming its benchmark, making it a top choice for investors looking for both financial returns and ethical considerations.
2. TIAA-CREF Social Choice Equity Fund (TICRX)
The TIAA-CREF Social Choice Equity Fund is a socially responsible fund that focuses on companies with strong ESG practices. The fund employs a comprehensive screening process to identify companies that are making a positive impact on society and the environment. With a diverse portfolio of companies across various sectors, this fund offers investors a well-rounded approach to ethical investing.
3. Parnassus Core Equity Fund (PRBLX)
The Parnassus Core Equity Fund is a top-performing socially responsible fund that focuses on companies with strong sustainability practices. The fund integrates ESG criteria into its investment process to identify companies that are leaders in their industries. With a long history of outperformance and a commitment to ethical investing, this fund is a solid choice for investors seeking both financial returns and social impact.
4. Green Century Funds
Green Century Funds offer a range of socially responsible investment options, including the Green Century Balanced Fund (GCBLX) and the Green Century Equity Fund (GCEQX). These funds focus on investing in companies that are leaders in environmental sustainability and social responsibility. With a strong commitment to advocacy and shareholder engagement, Green Century Funds are at the forefront of ethical investing.
5. Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund is a socially responsible fund that focuses on investing in companies that are making a positive impact on society and the environment. The fund employs a rigorous screening process to identify companies with strong ESG practices and a commitment to sustainability. With a focus on both financial returns and ethical considerations, this fund is a top choice for investors looking to align their investments with their values.
6. Vanguard FTSE Social Index Fund (VFTAX)
The Vanguard FTSE Social Index Fund is a passively managed fund that tracks the performance of the FTSE4Good US Select Index. The index includes companies that meet certain ESG criteria and have demonstrated leadership in sustainability practices. With low fees and broad diversification, this fund offers investors a cost-effective way to invest in socially responsible companies.
7. Allianz Global Investors Global Sustainable Equity Fund (ASAX)
The Allianz Global Investors Global Sustainable Equity Fund is a top-performing fund that focuses on companies with strong ESG practices. The fund invests in companies that are leaders in sustainability and social responsibility, making it a strong choice for investors looking to make a positive impact with their investments.
In conclusion, ethical investment funds offer investors the opportunity to generate returns while also making a positive impact on society and the environment. With a growing number of options available, investors can choose from a range of funds that align with their values and financial goals. Whether you are looking to invest in companies that are environmentally friendly, socially responsible, or ethical in their business practices, there are a variety of ethical investment funds to consider in 2021. Investing in these funds not only allows you to grow your wealth but also contribute to a more sustainable and equitable world. With the right research and due diligence, you can find the best ethical investment funds that meet your financial and ethical criteria.