Many socially responsible funds are now available to the investor who wants to make ethical choices. The Amana fund buys stocks that comply with Islamic laws. For example, it will not invest in holdings that earn interest, which is prohibited under Islamic law. The Ava Maria fund is designed for Catholic investors, the Timothy funds for evangelicals. The Sierra Fund focuses on environmentally friendly investments while the Women’s Equity Fund chooses companies that promote women’s interests in the workplace. On average, however, these socially responsible investments earn a lower return than standard index funds that mirror the performance of a stock index, such as the Standard & Poor’s 500.

Are socially responsible funds attractive to you? Do you now, or will you in the future, use them in saving for your own retirement?