SRI stands for socially responsible investment. It’s an investment made in a company that conducts its business in a socially responsible way. Socially responsible investments can then be split up into multiple socially conscious companies or through a socially conscious mutual fund or exchange-traded fund (ETF).
When looking into socially responsible investments, you should turn away from companies that produce addictive substances such as tobacco or alcohol. Instead, seek out companies engaged in social justice, are environmentally friendly, or utilize alternative energy solutions.
Socially conscious investing has become more prevalent in recent years due to dozens of new funds and other investment vehicles available to investors. However, these socially responsible investments should still be considered carefully. You must examine the company’s philosophy behind being socially responsible as well as the company’s profitability.
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