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Conscience funds, also known as socially responsible funds, allow you to invest in companies whose business practices are in keeping with your personal values.
For example, you can choose mutual funds that invest in companies that have exceptional environmental or social records, or that refuse to invest in companies that manufacture certain products or have certain employee benefit practices.
Each fund explains the principles it follows in its prospectus and describes the screens, or set of criteria, it uses to identify its investments.
- Browse Related Terms: Aggressive-growth fund, Conscience fund, Diversified Mutual Fund, Emerging markets fund, Green fund, Sector fund, Sector Mutual Fund, Socially responsible fund