DISSERTATION

SOCIALLY RESPONSIBLE INVESTMENT

BY INDIAN INVESTORS

SEBASTIAN C K
0921130
Section K
INTRODUCTION
Socially responsible investing, also known as sustainable, socially-conscious, or
ethical investing, describes an investment strategy which seeks to maximize
both financial return and social good.

An investment that is considered socially responsible because of the nature of the

business the company conducts. Common themes for socially responsible
investments include avoiding investment in companies that produce or sell
addictive substances (like alcohol, gambling and tobacco) and seeking out
companies engaged in environmental sustainability and alternative energy/clean
technology efforts. Socially responsible investments can be made in individual
companies or through a socially conscious mutual fund or exchange-traded fund
(ETF).

Socially responsible investing is not charity. The Shariah 50 has outperformed

the Sensex by nearly 25% and the BSE 500 by over 30%

STATEMENT OF THE PROBLEM

The aim of this research is to identify the factors and the investment objectives
which influence one individual investor’s decision to invest in ethical companies

OBJECTIVES OF THE STUDY

I) Primary objective:
 To analyze the socially responsible investing in India
 II) Secondary objectives:
 The factors that influence an investor to invest in ethical companies

 The most important and primary factor which makes an investor to choose
ethical investing

 To identify the reasons for less popularity of ethical investments in India

 To analyze the knowledge of investors about Indices (like BSE Tasis

Shariah 50 and Standard and Poor's Shariah-compliant index ) and ethical
funds

RESEARCH METHODOLOGY

The research is an empirical study and is to be conducted based on the factual data
available. For convenience of gathering accurate and timely information, the
respondents chosen are selected based on convenient sampling
From a larger sample of investors, data will be collected to analyze the
knowledge of Investors about social investments (to identify the reason for not
less popularity of ethical funds in India)

Among the above group of respondents ,more data will be collected from the
socially responsible investors so as to identify the investment objective which
attracted them towards the ethical investment

LIMITATIONS OF THE STUDY

 The study is restricted the opinion of respondents from a single locality.
(Bangalore)
 The sample size is small
 Previous research conducted in this field is not extensive.