Can Socially Responsible Investing Add Meaning to your Money
Socially responsible investing means different things to different people, there is no clear definition of SRI because everyone has a different idea of what it means to be socially responsible.
In general, socially responsible investing is a matter of aligning your values with your investments.
According to Peter Creedon of Crystal Brook Advisors simply call it values or belief investing, if you have strong beliefs about religion, climate, eating organic food, war/defense, wind, solar or even support of a country of origin, why not add those beliefs into your investment strategy and portfolio?
- Choosing NOT to invest money in companies don’t align with your values. As an example, people can start with the entire U.S stock market and remove tobacco manufacturers or those companies that practice animal testing.
- Choose TO invest in a few companies that are working to further cause your believe in, like clean energy or income inequality.
Yet, another key difference between this approach something like charity because it’s all about the investment return you receive, in addition to the social cause you’re supporting.
Best online investing companies says socially responsible investing is about investing in those companies who support forward-thinking advanced technologies, environmental & humanitarian issues for betterment of society.
Benefits of Socially Responsible Investing
The first and foremost benefit is, SRI is simply a good feeling to know that you’re supporting organizations or companies you believe in today’s world.
Ben Martinek of Bona Fide Finances says I would rather just invest with those who align with me and leave the end result to come however it is. Ultimately, getting the highest return in my portfolio is not the foremost priority for me. There are many other things that money cannot buy.
However, through ESG investing companies socially responsible investing is a relatively small movement nowadays. SRI has a lot of potential to grow. And being an investor during the early movement you may take it more likely for a positive change to happen.
In SRI returns may be pretty good, because multiple advisors of the USA said that socially responsible investors may able to expect the same return as other investors.
And CFP of Tandem Financial Guidance named Tyler Landes, believes that it can also lead to enhancements in investor behavior, which we know has a significant effect on investment returns.
How to Get Started
Create an overall investment plan? What are you investing for? How much you should invest? What is your target asset allocation?
Clearly define what socially responsible means to you and contact the best online investment companies.