SRI (socially responsible investing), sometimes known as social investment, is an investment that is deemed socially responsible owing to the nature of the company’s operations. Socially conscious investing is a popular subject for socially responsible investments. Individual firms with high social value, as well as a socially aware mutual fund or exchange-traded fund, can be used to make socially responsible investments .
Socially responsible investment has two primary objectives: social impact and financial benefit. The two do not have to go hand in hand; just because an investment promotes itself as socially responsible doesn’t imply it will offer investors a high return, and the promise of a good return is far from a guarantee that the firm involved is socially conscious. While attempting to analyze the investment’s social worth, an investor must still examine the investment’s financial prospects.