I'm generally a big fan of mutual funds. I know I've raved about them in the past, and I always voice a word of caution before extolling their virtues to people I think are interested investors. One of the varieties of mutual funds that, in the past, have been particularly dangerous are mutual funds with a moral mission. This type of fund ranges from the far-left of the political spectrum to the far-right and comes in many varieties in between.

The reason for the word of caution is only that this type of fund has historically placed their stated values ahead of the needs of investors--to make money (or at least not lose any). This re-ordering of priorities is virtuous to a point, but the reality is that not all investors are rich, and most aren't trying to make it rich--they're just trying to make it to retirement and do so responsibly in all possible ways.

In recent years, though, with the growing availability of low-cost investing options and the popularity of the concept of voting with your dollars, there have been quite a few morals-based mutual funds who have come to terms with the humanity of the companies of choice and have allowed themselves to invest in a broader selection of companies--given that they show a desire to make better choices--and also to manage their mutual funds based on earnings as much as morals. You can't vote with your money, after all, if you've lost it all investing in poorly-managed companies who had good intentions. And while a company may have good intentions, you need more than intentions to bring good results, either morally or monetarily.

Here's an article summarizing religious-themed mutual investments, the issues they face, and their recent successes:
Religious Investing Gains More Clout