We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Examination the differences between the ethical and conventional investment mutual funds - Research Paper Example

Comments (0) Cite this document
Summary
Running Head: Mutual Investment Funds Mutual Investment Funds Name: Institution: Date Introduction In the course of the last ten years, there has been a steady rise in the number of ethical investment mutual funds also known as social investment mutual funds…
Download full paperFile format: .doc, available for editing
Polish This Essay91% of users find it useful
Examination the differences between the ethical and conventional investment mutual funds
Read TextPreview

Extract of sample
"Examination the differences between the ethical and conventional investment mutual funds"

Download file to see previous pages This led to investors’ social awareness; thus, the concept was to make sure that any form of investment followed ethical criteria. This led to the creation of ethically managed investment funds that have been steadily increasing and represent a large amount of money invested in a country like the United States. About 12% of funds that are being professionally managed are part of a socially responsible mutual fund or of other private portfolios. The fact that there is a very large amount of money invested in this manner has led researchers to attempt to answer the question whether these ethical investment mutual funds are more expensive to run and perform better than the other conventional investment mutual funds. Initial research shows that the ethical investment mutual funds do not invest as widely as the conventional ones. However, there is no major difference between the amounts of money earned by the ethical investment mutual funds when compared to the conventional ones (Diltz, 1995). Statistics also showed that there is no difference in the areas that the two types of investment mutual funds tend to invest in (Sauer, 1997). Most of the evidence necessary to make the important comparisons between the two types of investment mutual funds is mostly found in the United States and the United Kingdom. Additionally, there is no pattern of investment that can conclusively determine the differences between the two types of investment mutual funds. However, when the ethical investment mutual funds are compared according to investment in small companies with the other non-ethical ones, a bias is found (Luther & Matatko, 1994). It showed that the ethical funds were the better performing and earned more than the conventional ones in these small companies. A different study that was conducted by Mallin et al. (1995) attempted to erase the problem of the benchmark that was set on the small companies and the investment by the ethical investment mutual funds. In this study, they considered the size of the ethical fund and the date that it was created. A method of statistics referred to as the Jensen’s alpha was used to analyze their findings. They concluded that ethical funds outperform the other funds using this criterion. The small cap bias that was cited by Luther and Matatko (1994) and that Mallin et al. (1995) attempted to correct led to further research by Luther and Matatko which concluded that using the size of the fund and applying the 2-factor Jensen’s alpha method; there was no conclusive evidence that reflected a difference in the financial performance of both investment mutual funds and that the small cap bias still existed. The study of the differences between the two types of investment mutual funds was complicated at this point. It was further complicated when Dibartolomeo (1996) and Kurtz (1997) claimed that the better performance of the ethical investment mutual funds was due to “large-cap growth exposures” and not due to the social factors essentially considered. This presented further biases attributed to sector and style. The purpose of this paper is to examine subsequent research in order to uncover the differences between the ethical investment mutual funds and the conventional investment mutual funds in order to determine whether the former performs better than the latter. This paper will not aim to discredit any research conducted, nor will it seek to be investigative but it will simply ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Examination the differences between the ethical and conventional Research Paper”, n.d.)
Retrieved from https://studentshare.org/business/1393709-do-ethical-investment-mutual-funds-perform-better
(Examination the Differences Between the Ethical and Conventional Research Paper)
https://studentshare.org/business/1393709-do-ethical-investment-mutual-funds-perform-better.
“Examination the Differences Between the Ethical and Conventional Research Paper”, n.d. https://studentshare.org/business/1393709-do-ethical-investment-mutual-funds-perform-better.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Differences between Islamic Financing Methods and Conventional Financing Methods
The research presents a thorough analysis of the basic difference between Islamic and conventional financing methods through literature analysis and effective research methods. The primary research collected from respondents helped in understanding their views and opinions on Islamic and conventional financing methods.
29 Pages(7250 words)Research Paper
Do Socially-Responsible Mutual Funds Perform Better Than Conventional Mutual Funds
This research aims to evaluate and present mutual funds as significantly different from most of the different kinds of available funds. Mutual funds are described as ‘open-ended’ implying that as the number of people investing in the funds increases, the fund too increases its shares or units as well.
11 Pages(2750 words)Research Paper
Differences between adult and teenage brain
Previously a common notion was held regarding the brain of teenagers and adults that the brain in these two stages was almost similar, however this notion has been denied by the research in the recent years. It has been shown that the brain of teenagers and adults is different in a considerable way.
3 Pages(750 words)Research Paper
Mutual Advantages For Trade Between Usa And Mexico
The commodities exchanged and the mode of exchange may have been different but the trade was as common an occurrence in olden times as is today. In olden times, however, trade was so decentralized. One such belt was the Santa Fe Trail that was a thriving business site between USA and Mexico where trade transactions took place on a large scale.
4 Pages(1000 words)Research Paper
Differences between primary and secondary research
Primary sources are retrieved from live sources whereas secondary sources are retrieved from recorded sources. Primary sources are retrieved from people who have personally experienced an event or are associated with the subject under discussion in some way.
3 Pages(750 words)Research Paper
Do Socially-Responsible Mutual Funds Perform better than Conventional Mutual Funds
Socially responsible investment is a process that incorporates ethical, social, and environmental considerations into investment decision-making criteria. Unlike the conventional investment, socially responsible investment funds apply a set of investment checks or screens to exclude or select assets based on ethical, social, ecological, or corporate governance criteria.
8 Pages(2000 words)Research Paper
Conventional medicine vs. Modern (such as herbs) & are herbs ethical
Some have been considered as conventional medicine because of their benefits. However, not all herbal medicines are beneficial and they have raised ethical concerns in the medical field. This is because; they tend to contain harmful substances though they are beneficial to the patient.
6 Pages(1500 words)Research Paper
Stability between Islamic and Conventional Banking In Relation To Customer Confidence
Besides, it has been also observed that during economic downfall IFIs do not lose their stability rather they have grown rapidly as can be evidenced from the global financial crisis. Moreover, IFIs have also maintained the risk factors efficiently.
9 Pages(2250 words)Research Paper
The difference between Islamic and conventional Banks
Financial ratios will extensively be used in the research and will be clustered into profitability and asset quality ratios. The past years have not only been characterized by uncertainties on accurate operational structures of
12 Pages(3000 words)Research Paper
Let us find you another Research Paper on topic Examination the differences between the ethical and conventional investment mutual funds for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us