Financial Performance of Green Mutual Funds in the US - Does Environmental Screening Affect Returns?

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Volume Title

School of Business | Bachelor's thesis

Date

2017

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

20

Series

Abstract

This thesis studies the financial performance of environmental mutual funds relative to their socially responsible investing (SRI) and conventional peers. My analysis stems from CAPM-based methodology, and I apply the Carhart (1995) multi-factor model to examine the expected returns. My empirical results show, that environmental screening of stocks doesn’t have negative effect on risk-adjusted returns, and the performance of green mutual funds has been consistent with their conventional peers. On a more recent period, green mutual funds are even outperforming SRI mutual funds.

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Thesis advisor

Shin, Sean

Keywords

green mutual funds, socially responsible investments, fund performance, environmental investing

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