The Research On The Relationship Between Social Responsibility Investing And Performance Of Securities Investment Funds

Securities investment funds that apply the strategy of socially responsible investment based on the sustainable development conception, emphasizing the positive impact of investment on society and the environment while focusing on the fund’s financial performance, which conform to the conception of comprehensive, coordinated and sustainable development. The time that SRI philosophy brought in China is not long. During the time of developing SRI on funds, we must pay attention to the question that whether SRI funds can give investors considerable returns, as well as the funds that invest "good" enterprises can increase the performance and control the risk.This paper compares and analysises the present situation of the developing of SRI on funds between China and foreign countries, and evaluates the securities investment funds from the perspective of social responsibility, and gives the scores of securities investment funds in our country, which reflects the social responsibility of securities investment funds. From the results, we find that the SRI funds hold the companies that got high scores at the rating of social responsibility and SRI funds did not perform less then general funds, the SRI funds can get the financial returns that not lower than the market average. Finally, the paper tests the relationship between the funds socially responsible investment and their performance as well as risk, we find that funds which get high socially responsible scores can improve performance, namely the funds that invest in "good" socially responsible companies can improve their performance and control the risk. The paper proposes suggestions on the promotion of socially responsible investment and the development of SRI funds,such as:the regulatory authorities build the system of socially responsible evaluation on funds; raise institutional investors’awareness of SRI, and establish SRI funds; publicizing the conception of socially responsible investment.