SOCIALLY RESPONSIBLE INVESTING AND PORTFOLIO DIVERSIFICATION

  1. Zakri Y. Bello

Article first published online: 2 FEB 2005

DOI: 10.1111/j.1475-6803.2005.00113.x

Issue

Journal of Financial Research

Journal of Financial Research

Volume 28, Issue 1, pages 41–57, March 2005

Additional Information

How to Cite

Bello, Z. Y. (2005), SOCIALLY RESPONSIBLE INVESTING AND PORTFOLIO DIVERSIFICATION. Journal of Financial Research, 28: 41–57. doi: 10.1111/j.1475-6803.2005.00113.x

Author Information

  1. Central Connecticut State University

Publication History

  1. Issue published online: 2 FEB 2005
  2. Article first published online: 2 FEB 2005

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Keywords:

  • G12;
  • G20;
  • G23

Abstract

I use a sample of socially responsible stock mutual funds matched to randomly selected conventional funds of similar net assets to investigate differences in characteristics of assets held, portfolio diversification, and variable effects of diversification on investment performance. I find that socially responsible funds do not differ significantly from conventional funds in terms of any of these attributes. Moreover, the effect of diversification on investment performance is not different between the two groups. Both groups underperform the Domini 400 Social Index and S&P 500 during the study period.

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