  This paper examines the risk-adjusted performance and differential fund flows
for socially responsible mutual funds (SRMF). The results show that SRMF rated
high on ESG, perform better than lower rated ESG funds during the period of
economic crisis. The findings also show that low ESG rated SRMF had higher
differential cash-flows than high rated ESG funds except for the period of
economic down turn. The findings are of interest to financial advisors,
investors, mutual fund managers, and researchers on how SRMF performance
responds to periods of economic downturn and expansion
