Socially responsible funds have experienced lower return than other types of funds of similar risk.

Question

Quizplus · Accepted Answer

Studies have shown that socially responsible funds tend to have slightly lower returns than their non-socially responsible counterparts of similar risk. This is due to the fact that socially responsible funds often have more strict screening criteria for their investments, which can limit their investment options and potentially reduce returns. However, many investors are willing to accept lower returns in exchange for investing in companies that align with their values and beliefs.

Socially Responsible Funds Have Experienced Lower Return Than Other Types