Empirical Research On Socially Responsible Investment Fund Performance And Risk

Socially responsible investment funds, is based on the concept of social responsibility of a new investment product, it is a more specific class of securities investment funds, compared with traditional funds, socially responsible funds investors when making investment decisions, consider not only the traditional financial performance, but also consider the positive or negative impact on the investment will bring social, environmental and so on. Socially responsible funds in Europe and America and other Western countries, originated in the 1960s in the United States, a time when the United States during the Vietnam War, anti-war sentiment, expressed as refusing to give the Vietnam War-related enterprises to invest in the financial markets, after investors began to focus on investment object of social responsibility, ethical and environmental aspects of good corporate social responsibility, will be supported by more investors. Social Responsibility Fund has become an important part of Europe and other Western countries, and other mainstream investments.Social Responsibility Fund by screening strategy, shareholder advocates and community investment, investment, investment in objects that meet the investment criteria of social responsibility to invest. As a new investment, social responsibility fund investors seeking to maximize economic benefits, while also taking into account the social and environmental benefits, thus contributing to the economic, social and complementary coexistence relationship formed between the three environments. In China, although the economy has gained remarkable growth over the past few decades, but the extensive economic development, making the society, resources and environment issues have become increasingly prominent, which resulted in a waste of resources to a certain extent, energy consumption serious, fragile natural resources and ecological environment has been a threat to sustainable economic development. Therefore, the introduction in the financial markets can get triple benefits of socially responsible funds, for the adjustment of investment structure, the main goal of the reconstruction market plays an important role. Currently, the socially responsible investment funds in China is still in its infancy, is not the scale of investment, the number of funds is not much. Domestic scholars such investments remain in the majority on the introduction of socially responsible funds, the lack of empirical research on the performance and risk class of the Fund.In this paper, the basic concept of socially responsible funds, analyzes the theoretical basis of socially responsible investment funds. Domestic and foreign scholars have combed the social responsibility fund performance and risk research literature, summarized the development of domestic and social responsibility funds and fund the development of social responsibility of the existing problems. This paper studies the performance and risks of socially responsible funds from the empirical. Select the six equity funds from our current socially responsible funds, then select 6 to set up a similar time, similar to the scale of investment in the underlying funds,, traditional fund performance evaluation theory and fund risk measurement theory, by Fama-French, calculate each fund’s Sharpe ratio, Treynor index, Jensen index and risk. According to the empirical results, performance and risk can be considered socially responsible funds and traditional funds no better than traditional funds, but this difference was not significant. Finally, based on empirical results on the development of policy recommendations for our social responsibility funds.