Pax World Management, the granddaddy of socially responsible mutual funds , agreed to pay $500,000 to settle Securities and Exchange Commission charges that it violated its own rules when two of its mutual funds invested in off-limits industries such as gambling and liquor, and oil and gas exploration.

David Bergers, head of the S.E.C.’s Boston office, said it was the first case the agency has brought against a socially responsible fund for failing to adhere to its own code. Mr. Bergers declined to say whether the S.E.C. would specifically look into the industry, but said, ‘’As a matter of routine practice, whenever we identify a risk area, we incorporate it into our oversight of firms.'’

The socially responsible investment industry is estimated to hold more than $2.7 trillion in investor assets last year, according to the Social Investment Forum.

The Wall Street Journal noted that while socially responsible funds have garnered strong interest from investors, their critics say the approach can be difficult to implement and can detract from investment performance.

In a statement, Pax chief Joseph Keefe, who noted that the investigation began in 2004, before his tenure, said that [t]here was no financial harm to shareholders resulting from the issues described in the SEC Order.”

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