good investing bad risk?
Byline: David Hoffman Socially conscious mutual funds can be costly on a risk-adjusted basis, new research shows. When returns are adjusted for risk, investors who choose actively managed funds can lose more than 3.5% a year, according to a recent study from three academics at The Wharton School of the University of Pennsylvania. Those who use index funds give up very little, according to the study. The findings are causing quite a stir among socially conscious investors. Many of the firms that offer socially aware investment products say the report is flawed because it doesn’t make a fair comparison between funds of that category and mainstream funds. “The universe of non-socially responsible funds they used contains many that are…
