Socially Conscious Funds
Investors who want to avoid investing in certain companies because of their ethical or moral beliefs might choose to invest in a socially conscious fund. Socially conscious funds screen companies based on a variety of criteria, like a company's environmental record, how it treats its employees, and the types of products it sells. As definitions of what is socially and ethically acceptable differ from person to person, what is considered socially conscious is very subjective. Although one investor might feel strongly about protecting animal rights and the environment, another's chief concern might be screening companies that sell alcohol and tobacco. As a result, there are many types of funds available to cater to individual taste.
Socially conscious funds are also known as socially responsible or green funds.
Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. A prospectus contains this and other information. A mutual fund prospectus is available through www.scottrade.com or through a Scottrade branch office. The prospectus should be read carefully before investing.