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Morningstar SRI definition

Adriene Hill Aug 10, 2010

Here’s Morningstar’s definition of Socially Conscious fund (which they are using interchangeably with SRI funds).

Any fund that invests according to non-economic guidelines. Such funds may make investments based on such issues as environmental responsibility, human rights, or religious views. A socially conscious fund may take a pro-active stance by selectively investing in, for example, environmentally-friendly companies, or firms with good employee relations. This group also includes funds that avoid investing in companies involved in promoting alcohol, tobacco, or gambling, or in the defense industry.

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