NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, July 18, 2011

By Thomas Kostigen

SANTA MONICA, Calif. (MarketWatch) – Are we increasingly investing out of guilt? I’d say so.

Look at the amount of money that has flowed into socially responsible funds: $3 trillion, up 34% since 2005, according to the Social Investment Forum.

Got a social conscience? Feel guilty? Invest your conscience away. It’s the 21st century version of the selling of indulgences.

More money is flowing into “good” investments than ever.

Take the low-hanging fruit – mutual funds and exchange-traded funds. There are about 500 socially conscious funds, according to the SIF. There are hedge funds, debt instruments and now even private-equity vehicles that are aimed at investing in companies with a social conscience.

You can find out how to invest in socially conscious mutual funds by visitingwww.socialfunds.com . Or in social ventures themselves by visitingwww.sjfinstitute.org . For the super wealthy, check out www.thegiin.org .