Evaluating the Performance of Socially Responsible Investment Funds

Liliana Eva Donath, Roxana Ioan, Tatenda Mandimutsira


The definition and scope of sustainability have evolved over the years, stimulated by debates which have won the attention of investors, thereby creating concepts such as responsible investment, socially responsible investment, responsible finance, etc. The purpose of the paper is to demonstrate whether screening has an effect on the financial performance of mutual funds and whether these effects are positive or negative. The study mainly focuses on the U.S. market as it is well developed and therefore provides greater insight and value. The research method uses the Markowitz and Sharpe market models to determine the market value of SRI and non SRI mutual funds. The study also depicts the investors’ attitude towards embedding sustainability driven variables in the decision making process as well as the market response to socially responsible investments.


responsible investment; screening; performance; investors’ behavior.

JEL Codes

L21; M14; G11; C65.

Full Text:



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DOI: http://dx.doi.org/10.2478/saeb-2018-0008


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