According to one investment analyst, the growth in social investment funds is being driven by guilt, and that’s a positive thing for the future. Over $3 trillion in investment dollars has flowed to this sector since 2005, representing a 34% rise over a period of time when many investment funds saw massive outflows. Thomas Kostigen argues that this is an indication that investors are developing more of a social conscience and choosing their investments accordingly.
More money flowing to ethically “good” investments is undoubtedly a positive development for many stakeholders. There are now about 500 mutual funds and ETFs which can be labeled as socially conscious, and even some hedge funds and private equity vehicles are now getting in on the act. Some helpful websites for those who want to invest with their conscience include www.socialfunds.com and www.thegiin.org.