The 7 Top Funds for Ethical Investing

No matter your politics or your beliefs, you can find a socially screened fund that will match your morals -- and make you money.

It's easy to roll your eyes at socially responsible investing. Maybe it's because the term suggests that other types of investing are, well, socially irresponsible. Look past its practitioners' sense of moral superiority, however, and you'll discover that some funds have more to offer than good intentions.

Traditionally, socially screened funds (our preferred, nonjudgmental term for the group) shunned stocks of companies involved in alcohol, tobacco, gaming and weapons. But as other funds that adhere to green and religious tenets have come into being over the past decade, screens have expanded to include such matters as corporate governance, environmental records and workplace standards. Some funds with a socially conservative bent will not invest in companies that make products that facilitate abortions.

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Contributing Editor, Kiplinger's Personal Finance