Investing 08 Jan 2007 11:27 pm
For those of you who care more about political purity than the return on your investment the New York Times has a story on two politically correct mutal funds. Blue Investment Management’s small and large cap funds invest in companies that donate most of their campaign contributions to Democrats. Action Fund Management’s Free Enterprise Action fund (FEAOX) lobbies “companies in the portfolio whenever they think shareholders’ money is being wasted on social causes.”
Three professors found that socially responsible investments, which include these politically motivated funds, slightly underperform a market index. Of course the socially conscious investor is willing to accept such a cost to ease their conscience.