Efficiency of investment strategy of socially responsible funds calvert
Efficiency of investment strategy of socially responsible funds calvert

Summary/Abstract: The subject of the in-depth analysis was effectiveness of Socially Responsible Investment. Twoanalyzed funds were selected from the American market of Calvert Socially Responsible Funds. The measure of investment effectiveness was log of returns. Moreover, the risk was estimated by conditional variance of ROI. It was based on GARCH (1,1) model. It is assumed in the paper that ROI and the risk generated by the thematic fund are different (lower) from the market average represented by S&P500 index. Therefore, American investors, while choosing from SRIs, are motivated not only by potential profit but also by the awareness of social purposes for which SRIs were created. Additionally, the paper presents the research results pointing at differences in approach to SRIs on American and European markets. The differences regard the definition of investment, the business involved, professional vocabulary and applied strategies.

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