Best investments are in "sin" markets

(CNN) - When it comes to investing, you might want to check your moral compass at the door.

Recent studies show casino, alcohol and tobacco stocks can all reap significant rewards. If greed is already one of the seven deadly sins, why not dig a little deeper into the portfolio?

The study out of New York University and Princeton University show so-called "sin" stocks have outperformed the broader market every year for decades. One option is to invest with a vice fund. Portfolio manager Charles Norton said his fund focuses on four so-called "vice" industries: alcoholic beverages, tobacco, aerospace defense and gaming.

Since its inception in 2002, the vice fund has outperformed the S&P 500. However, 2008 was a miserable year. The fund fell by 42 percent, mainly because of its bet on casinos. The fund now concentrates on what it calls consumer staples like Altria - formally known as Philip Morris - and beermaker Carlsberg.

Some of the businesses are highly regulated and are constant targets of criticism. After all, despite the financial allures, investors need to sleep at night.