WealthManagement.com surveyed more than 500 financial advisors about socially responsible investing last month, finding that a lack of client demand was the primary factor keeping them away from these types of investment funds.
The survey found that advisors are definitely aware of SRI funds, but do not offer them because few clients are asking for them. One-quarter (23 percent) of advisors said it's because of a perception that these funds underperform the broader market.
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There is some upside, however. Fifty-nine percent of advisors see SRI becoming a bigger part of their practices in five years, driven mainly by demand from younger investors. The study found that 76 percent of 314 respondents said millennials will constitute one of the three groups that will drive the greatest demand for SRI, followed by women (61 percent) and college-educated clients (45 percent).
Click through these infographics to find out more about how advisors view SRI.