Q: Are there any Mutual fund which follow the "SRI" - Socially responsinle Investment principle? I want to invest in Mutual funds which invest based on the Hinduism principles. There is one index known as "Dharma index" but how do I invest in India?

A: Global index provider Dow Jones indexes and Dharma Investments, a private investment company, in Jan, 2008 announced the launch of Dow Jones Dharma index for measuring the performance of companies selected according to the value systems and principles of Dharmic religions, especially Hinduism and Buddhism. This index has been put together by Wallstreet. Stocks will be screened on industry, environmental and corporate governance parameters before being included in the Dharma indexes. The index constituents would be reviewed on a quarterly basis. There are very few mutual funds in India investing in socially responsible companies.

ABN Amro launched India's first SRI fund (called ABN Amro Sustainable Development Fund) but its SRI methodology does not match international standards. It evaluates companies mainly on disclosures and transparency, but does not evaluate the company’s performance on environmental, social and corporate governance parameters which are critical in evaluating socially responsible companies. You can click here to visit Fortis Sustainable Development Fund.

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From Your Expert @ InvestmentYogi