Ethical Standards in Mutual Funds

The role of ethics in finance is an issue that has begun to take on greater importance. Investors are showing great interest in financial instruments that display ethical criteria within their structure and operation. Financial instruments incorporating can shun short-term trends in an effort to achieve long-term growth. Mutual funds pursuing ethical standards represent an important sign of the restoration and reaffirmation of ethical and social values by the financial world. Some mutual funds pursue a goal of a more social nature with investments established based on the premise of transparency, trust, and social responsibility. By following ethical standards, mutual funds might be able to reduce conflicts of interest and provide allocative efficiency within the financial markets